Basis in the property transferred by alice and jane


Alice and jane from osprey corporation. alice transfers property, basis of $25,000 and value of $200,000, for 50 share in osprey corporation. jane transfers property, basis of $50,000 and value of $165,000, and agrees to serve as manager of osprey for one year; in return, jane receives 50 shares in osprey. the value of jane's services to osprey is $35,000.a. what gain or income do alice and jane recognize on the exchange? b. what is osprey corporation's basis in the property transferred by alice and jane? how does osprey treat the value of the services that jane renders?

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Accounting Basics: Basis in the property transferred by alice and jane
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