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makkiz [27]
2 years ago
14

Carlos transfers property with a tax basis of $500 and a fair market value of $800 to a corporation in exchange for stock with a

fair market value of $650 and $50 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange?a. $800 b. $600 c. $550 d. $450
Business
1 answer:
12345 [234]2 years ago
4 0

Answer:

c. $550

Explanation:

Property has transfered by Carlos, and at the time of Transfer Carlos basis on the Property is $500.

So, from "Carryover basis" rule:

Corporation Tax basis on Property is = Basis of Carlos + Gain recognised.

                                                              = $500 + $50

                                                              = $550.

Therefore, The corporation's tax basis in the property received in the exchange is $550

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Answer:

$9,000

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7 0
3 years ago
The current spot exchange rate is $1.55 = €1.00; the three-month U.S. dollar interest rate is 2 percent. Consider a three-month
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Answer:

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Acording to the data, we have the following:

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$1.55-$1.50=$0.05

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8 0
2 years ago
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1 year ago
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To create strong partnering relationships, marketing channel members must develop mutual trust, openly communicate, have common
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