Question - 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 FMV of $1,400
b. contribution of property with a basis of $3,000 and FMV of $3,800. The shareholders also received $500 cash from the corporation as part of the stock transaction.
c. contribution of property with a basis of $8200 and FMV of $12500. The shareholders also received property with a FMV of $1700 from the corporation as part of the stock transaction.
d. contribution of 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 building with a FMV of $1,700,000, a mortgage(assumed by the corporation) of $1,000,000, and a basis of $635,000.