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netineya [11]
3 years ago
7

Casey transfers property with a tax basis of $3,800 and a fair market value of $6,800 to a corporation in exchange for stock wit

h a fair market value of $5,250 and $720 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $830 on the property transferred. Casey also incurred selling expenses of $461. What is the amount realized by Casey in the exchange
Business
1 answer:
ElenaW [278]3 years ago
7 0

Answer:

$5789

Explanation:

Calculation to determine the amount realized by Casey in the exchange

Fair market value of stock $5250

Add Cash in transaction $ 720

Add Liability which is going to the buyer $ 830

Less Selling expenses ($461)

Amount realized $5789

($5250+$720+$830-$461)

Therefore the amount realized by Casey in the exchange is $5789

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Follows are the solution to this question:

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Some of the missing data is defined in the attached file, please find it.

Bond problem rates  

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N = 4\times 2 \\\\

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