1
answer
0
watching
68
views
28 Sep 2019
Samuel and Zachary formed S&Z Accounting & Tax Services,Inc. on 1/1/15. Each shareholder contributed the following inexchange for his corporate stock:
Asset(Basis) Asset (FMV) Sharesreceived
Samuel - property (acquired 5 yearsago) 25,000 40,000 90
Zachary -services 0 20,000 10
25,000 60,000 100
a) Does SEC. 351 apply?
b) compute Samuels's realized gain or loss
c) compute Samuels's recognized gain or loss
d) what is samuel's basis in his stock
e) what is the corporation's basis in the property received fromsamuel
f) does Zachary have to recognize any income? if so, how muchand what is its nature? What is his basis in his stock?
Samuel and Zachary formed S&Z Accounting & Tax Services,Inc. on 1/1/15. Each shareholder contributed the following inexchange for his corporate stock:
Asset(Basis) Asset (FMV) Sharesreceived
Samuel - property (acquired 5 yearsago) 25,000 40,000 90
Zachary -services 0 20,000 10
25,000 60,000 100
a) Does SEC. 351 apply?
b) compute Samuels's realized gain or loss
c) compute Samuels's recognized gain or loss
d) what is samuel's basis in his stock
e) what is the corporation's basis in the property received fromsamuel
f) does Zachary have to recognize any income? if so, how muchand what is its nature? What is his basis in his stock?
Elin HesselLv2
28 Sep 2019