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Mark and Gail form Maple Corporation with the foll...

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Mark and Gail form Maple Corporation with the following consideration: Consideration Transferred basis to fair market Number of transferor value shares issued From Mark- cash $40,000 $40,000 installment- obligation 140,000 360,000 40 From Gail- Cash 140,000 140,000 Equipment 120,000 180,000 Patent $4,000 280,000 60 The installment obligation has a face amount of $360,000 and was acquired last year from the sale of land held for investment purposes (adjusted basis of $140,000). Regarding these transaction, provide the following information: Mark's recognized gain or loss is ________. Mark's basis in the Maple Corporation stock is _____. Maple Corporation's basis in the installment obligation is ______. Gail's recognized gain or loss is _________. Gail's basis in the Maple Corporation stock is ______. Maple Corporation's basis in the equipment is _____. Its basis in the patent is _____. Would your answers to the preceding questions change if Mark received common stock and Gail received preferred stock? 1. yes 2. No Would your answers change if Gail was a partnership instead of an individual? 1. yes 2. No

 

Paper#1198 | Written in 18-Jul-2015

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