Determine the tax consequences of the transfer to all party


Yager and Boggs formed Y&B company in 2009. Yager contributed a building with a fair market value of $97,000, a mortgage of $75,000 and an adjusted basis of $50,000 in return for 22 shares of Y&B Company stock. (Y&B assumed the mortgage) Boggs contributed land with a fair market value of $22,000 and an adjusted basis of $40,000 in return for 12 shares of Y&B Company stock and 10 $1,000 bonds. Lyle performed legal and accounting work during the incorporation process in return for six shares of stock. Determine the tax consequences of the transfer to all parties.

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Accounting Basics: Determine the tax consequences of the transfer to all party
Reference No:- TGS090513

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