In a tranfer that qualified under sec. 351, George transferredequipment worth $750,000 (adjusted basis $400,000, depreciationrecapture potential $75,000). The equipment was subject to a$150,000 loan, which the transferee corporation assumed as part ofthis transaction. In exchange, George received (1) CS of thetransferee corporation worth $425,000, (2) promissory notes of thetransferee corporation worth $100,000 and (3) cash of $75,000(i.e., total consideration $500,000, with loan assumptionincluded). Answer each question below, which relate to thistransfer by George.
1) Determine the gain or loss realized byGeorge on this transaction.
2) Determine the gain or loss recognized byGeorge on this transaction.
3) Determine the basis that George will assign to the transfereecorporation CS received in this transaction
4)
Determine the basis that George will assign to the PromissoryNotes received in this transaction
In a tranfer that qualified under sec. 351, George transferredequipment worth $750,000 (adjusted basis $400,000, depreciationrecapture potential $75,000). The equipment was subject to a$150,000 loan, which the transferee corporation assumed as part ofthis transaction. In exchange, George received (1) CS of thetransferee corporation worth $425,000, (2) promissory notes of thetransferee corporation worth $100,000 and (3) cash of $75,000(i.e., total consideration $500,000, with loan assumptionincluded). Answer each question below, which relate to thistransfer by George.
1) Determine the gain or loss realized byGeorge on this transaction.
2) Determine the gain or loss recognized byGeorge on this transaction.
3) Determine the basis that George will assign to the transfereecorporation CS received in this transaction
4)
Determine the basis that George will assign to the PromissoryNotes received in this transaction |
