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Home Q & A Board Other Fields Homework Help Business Accounting
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Mandarini Mandarini
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7 years ago
Martin operates a law practice as a sole proprietorship using the cash method of accounting. Martin incorporates the law practice and transfers the following items to a new, solely owned corporation.

   Adjusted Basis   FMV
Cash
Equipment
Accounts receivable
Accounts payable (deductible expenses)
Note payable (on equipment)   $10,000
 80,000
          0
          0
 50,000   $  10,000
  100,000
 120,000
  60,000
  50,000

Martin must recognize a gain of ________ and has a stock basis of ________:
A) $0; $30,000
B) $0; $40,000
C) $20,000; $30,000
D) $20,000; $40,000
Textbook 
Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts

Prentice Hall's Federal Taxation 2014 Corporations, Partnerships, Estates & Trusts


Edition: 27th
Authors:
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genflynngenflynn
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7 years ago
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More solutions for this book are available here
1
We have the most crude accounting tools. It's tragic because our accounts and our national arithmetic doesn't tell us the things that we need to know.

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Mandarini Author
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7 years ago
Brilliant ツ
Danivalda
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Yesterday
Correct Slight Smile TY
Holly72492
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2 hours ago
Smart ... Thanks!
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