Title: Grand Corporation transfers 40% of its assets having an adjusted basis of $600,000 and an FMV of ... Post by: Mandarini on Feb 14, 2017 Grand Corporation transfers 40% of its assets having an adjusted basis of $600,000 and an FMV of $800,000 to New Corporation in exchange for 75% of its single class of stock. Grand Corporation is owned equally by Annie and Betsy who are unrelated. Annie's basis for her Grand stock is $300,000 and Betsy's basis is $400,000. Annie exchanges all of her Grand stock for all of the New stock received in the exchange. Which of the following statements is correct concerning these transactions?
A) Grand Corporation does not recognize a gain on the asset transfer to New Corporation or the stock distribution to Annie. B) Annie recognizes a $500,000 capital gain on the exchange of the Grand stock for the New stock. C) Annie's basis in the New stock is $300,000. D) Grand's basis for the New assets is $600,000. Title: Re: Grand Corporation transfers 40% of its assets having an adjusted basis of $600,000 and an FMV of ... Post by: genflynn on Feb 14, 2017 Content hidden
Title: Re: Grand Corporation transfers 40% of its assets having an adjusted basis of $600,000 and an FMV of ... Post by: Mandarini on Jul 15, 2017 Wow you guys are great!!!!!!!!!!!!!!
always correct Title: Re: Grand Corporation transfers 40% of its assets having an adjusted basis of $600,000 and an FMV of ... Post by: alisha jimenez on Apr 2, 2020 you guys are great!
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