Basis of stock in the hands of the shareholder


Determine the basis of stock in the hands of the shareholder in each of the following instances. Assume that the 80% rule is met in all cases.

a. Contribution of property with a basis of $ 1,000 and a FMV of $ 1,400.

b. Contribution of property with a basis of $ 3,000 and a FMV of $ 3,800. The stockholder also received $ 500 cash from the corporation as part of the stock transaction.

c. Contribution of property with a basis of $ 8,200 and a FMV of $ 12,500. The stock-holder also received property with a FMV of $ 1,700 from the corporation as part of the stock transaction.

d. Contribution of a building with a FMV of $ 200,000, a mortgage ( assumed by the corporation) of $ 100,000, and a basis of $ 125,000.

e. Contribution of a building with a FMV of $ 1,700,000, a mortgage ( assumed by the corporation) of $ 1,000,000, and a basis of $ 635,000.

Request for Solution File

Ask an Expert for Answer!!
Accounting Basics: Basis of stock in the hands of the shareholder
Reference No:- TGS0512389

Expected delivery within 24 Hours