Corporate Formation

Teresa incorporated her sole proprietorship by contributing land FMV $100,000 AB $25,000 and inventory FMV $15,000 AB $5,000 in exchange for stock. The FMV of the stock was equal to the FMV of the property transferred. What is the realized gain or loss to Teresa?

• $115,000

• $85,000

• $75,000

• $30,000

Teresa incorporated her sole proprietorship by contributing land FMV $100,000 AB $25,000 and inventory FMV $15,000 AB $5,000 in exchange for stock. The FMV of the stock was equal to the FMV of the property transferred. What is the recognized gain or loss to Teresa?

• $85,000

• $115,000

• $75,000

• $0

Teresa incorporated her sole proprietorship by contributing land FMV $100,000 AB $25,000 and inventory FMV $15,000 AB $5,000 in exchange for stock. The FMV of the stock was equal to the FMV of the property transferred. What is Teresa's basis in the stock?

• $30,000

• $115,000

• $105,000

• $40,000

Teresa incorporated her sole proprietorship by contributing land FMV $100,000 AB $25,000 and inventory FMV $15,000 AB $5,000 in exchange for stock. The FMV of the stock was equal to the FMV of the property transferred. What is the Corporation's basis in the land and inventory?

• Land $100,000

  Inventory $15,000

• Land $100,000

  Inventory $5,000

• Land $25000

  Inventory $5,000

• Land $25000

  Inventory $15,000,

Martin incorporated his business by contributing Building FMV $250,000 AB $150,000 encumbered by a mortgate of $75,000 to form a solely owned corporation. The FMV of stock received was $175,000. What is his realized gain or loss?

• $100,000

• $0

• $125,000

• $175,000

Martin incorporated his business by contributing Building FMV $250,000 AB $150,000 encumbered by a mortgate of $75,000 to form a solely owned corporation. The FMV of stock received was $175,000. What is his recognized gain or loss?

• $100,000

• $75,000

• $25,000

• $0

Martin incorporated his business by contributing Building FMV $250,000 AB $150,000 encumbered by a mortgate of $75,000 to form a solely owned corporation. The FMV of stock received was $175,000. What is his basis in the stock received?

• $100,000

• $75,000

• $0

• $250,000

Martin incorporated his business by contributing Building FMV $250,000 AB $150,000 encumbered by a mortgate of $75,000 to form a solely owned corporation. The FMV of stock received was $175,000. What is the corporation's basis in the building?

• $250,000

• $75,000

• $150,000

• $0

Sofia transferred a building FMV 100,000, AB 90,000 and inventory FMV $10,000 AB $25,000 in exchange for 100 percent of Sofia Inc. What is her basis in the stock?

• $115,000

• $105,000

• $110,000

• $100,000

Sofia transferred a building FMV 100,000, AB 90,000 and inventory FMV $10,000 AB $25,000 in exchange for 100 percent of Sofia Inc. What is the corporations's basis in the properties?

• $100,000 and $10,000

• $90,000 and $25,000

• $90,000 and $10,000

• $100,000 and $25,000