Corporate Tax Q – Jeff, Can you help?

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  • April 9, 2013 at 10:10 pm #177044
    qwerty113
    Member

    Ace Corp.’s Basis in Building???

    L & P formed Ace Corp.

    L transferred Building – AB:40,000 FV:82,000 Mortgage: (10,000) for 60% of Stock

    P transferred Land – AB: 5,000 FV:48,000 for 40% of Stock

    A. $30,000

    B: $40,000 What is the correct answer? Would you try?

    Thank you,

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  • April 9, 2013 at 11:27 pm #408741
    jeff
    Keymaster

    It would be the $40k AB of the transferor.

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