Answer:
Amount that can be withdrawn each month:
$6,342.06
Nominal dollar amount of last withdrawal:
$54,835.61
Explanation:
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Answer: $50,000
Explanation:
Based on the scenario in the question, Jocelyn's basis in the property contributed will be:
Land = $60,000
Inventory = $5,000
Total = $65,000
We are told that the exchange is tax-free, hence, Jocelyn has income of $0.
Therefore, Jocelyn’s basis in Zion’s Corporation stock will be her original basis in property contributed which is $65,000 plus the gain of $0 and then we deduct the liability that was assumed by the corporation which $15,000. This will now be:
= $65,000 + 0 - $15,000
=$50,000
