Exercise 18-22 (Algorithmic) (LO. 2) Martin transfers real estate with an adjust
ID: 2411965 • Letter: E
Question
Exercise 18-22 (Algorithmic) (LO. 2)
Martin transfers real estate with an adjusted basis of $369,000 and fair market value of $516,600 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $439,110.
Determine Martin’s recognized gain on the transfer and the basis for his stock.
If amount is zero, enter "0".
Martin has a recognized gain on the transfer of $__________ and a basis of $___________ for his stock.
Explanation / Answer
Answer
liability = 439110
less; adjusted basts = 369000
gain transfer = 70110
the basis of the stock = 0
Related Questions
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.