Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return for 50 perce the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted ta bases in return for 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Adjusted Tax FMV Basis Building Land $ 114,375 266,875 $ 30,500 122,000 $ 381,250 $ 152,500 Total To equalize the exchange, Wizard Corporation paid Hermione $76,250 in addition to her stock. sume Hermione's adjusted tax basis in the land was $381,250.
Ron and Hermione formed Wizard Corporation on January 2. Ron contributed cash of $305,000 in return for 50 perce the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted ta bases in return for 50 percent of the corporation's stock: (Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.) Adjusted Tax FMV Basis Building Land $ 114,375 266,875 $ 30,500 122,000 $ 381,250 $ 152,500 Total To equalize the exchange, Wizard Corporation paid Hermione $76,250 in addition to her stock. sume Hermione's adjusted tax basis in the land was $381,250.
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 30P
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