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Alexandra [31]
3 years ago
15

Carlos transfers property with a tax basis of $820 and a fair market value of $1,145 to a corporation in exchange for stock with

a fair market value of $995 and $69 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $81 on the property transferred. What is the corporation's tax basis in the property received in the exchange
Business
1 answer:
Klio2033 [76]3 years ago
6 0

Answer:

The corporation's tax basis in the property received in the exchange is $889

Explanation:

Property was transferred by Carlos, and at the time of Transfer Carlos basis on the Property is $820.

From "Carryover basis" rule,

Corporation Tax basis on Property = (Basis of Carlos) + (Gain recognized)

So, Corporation's tax basis in the Property

= $820 + $69

= $889

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shtirl [24]

Answer:

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3 0
3 years ago
Tyler Co. predicts the following unit sales for the next four months: April, 3,100 units; May, 4,900 units; June, 7,000 units; a
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Answer:

Production Budget   April   3970    May      5530  June        5740 units  

Explanation:

Tyler Co.

Production Budget

For the months of April, May, and June.

Particulars                        April,            May,           June      July

Sales                                 3100          4900            7000      2800(given)

+ Desired Ending Inv.      1470           2100            840

<u>Less Beginning Inv.         600            1470            2100                 </u>

<u>Production Budget           3970          5530          5740           </u>

<u />

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Ending Inventory  for April =  2800*30%=840

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