During 2016 Hill and Dale formed a corporation to which Hill transferred a paten

Question

During 2016 Hill and Dale formed a corporation to which Hill transferred a patent right that had a fair market value to him of $25000 and a $0 adjusted basis. Dale transferred a building that had a fair market value of $100000 and an adjusted basis to him of $75000. In return Hill received 250 shares and Dale received 750 shares of the corporation’s 1000 outstanding shares of its only class of stock. As a result of this transaction Mr Dale should report what type of gain? During 2016 Hill and Dale formed a corporation to which Hill transferred a patent right that had a fair market value to him of $25000 and a $0 adjusted basis. Dale transferred a building that had a fair market value of $100000 and an adjusted basis to him of $75000. In return Hill received 250 shares and Dale received 750 shares of the corporation’s 1000 outstanding shares of its only class of stock. As a result of this transaction Mr Dale should report what type of gain? During 2016 Hill and Dale formed a corporation to which Hill transferred a patent right that had a fair market value to him of $25000 and a $0 adjusted basis. Dale transferred a building that had a fair market value of $100000 and an adjusted basis to him of $75000. In return Hill received 250 shares and Dale received 750 shares of the corporation’s 1000 outstanding shares of its only class of stock. As a result of this transaction Mr Dale should report what type of gain? During 2016 Hill and Dale formed a corporation to which Hill transferred a patent right that had a fair market value to him of $25000 and a $0 adjusted basis. Dale transferred a building that had a fair market value of $100000 and an adjusted basis to him of $75000. In return Hill received 250 shares and Dale received 750 shares of the corporation’s 1000 outstanding shares of its only class of stock. As a result of this transaction Mr Dale should report what type of gain?

Explanation / Answer

Mr Dale Should Neither report a gain or loss because he transferred the building and in return he get the same amount of shares from the company.

Related Questions

Navigate

• Browse (All)
• Browse D
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.