Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon i

Question

3 years ago

9

Yvonne and Simon form Ion Corporation. Yvonne transfers equipment (basis of $110,000 and fair market value of $165,000). Simon i

nvests $130,000 of cash. They each receive 100 shares in Ion Corporation, worth $130,000, but Yvonne also receives $35,000 in cash from Ion. Ion Corporation has a basis of $__________ in the equipment. Yvonne has a basis of $______________- for her stock and Simon has a basis of $fill in the blank 3 for his stock.

Business

1 answer:

Allushta [10] · Answer 1 · 2022-06-23T16:54:42+03:00

Answer:

$145,000;$110,000;$130,000

Explanation:

Based on the information given the Corporation has a basis of the amount of $145,000 in the equipment calculated as ( Basis of the amount of $110,000+ Cash Received of the amount of $35,000) . Secondly Yvonne has a basis of the amount of $110,000 for her stock which is calculated as (basis in equipment of the amount of $110,000- Boot received of the amount of $35,000+ the lesser of the amount realized as gain which is $35,000) and lastly Simon has a basis of the amount of $130,000 for his stock which represent the cash Contributed by Simon.