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faust18 [17]
3 years ago
15

Sybil transfers property with a tax basis of $5,000 and a fair market value of $6,000 to a corporation in exchange for stock wit

h a fair market value of $3,000 and $2,000 cash in a transaction that qualifies as a section 351 transfer. The corporation assumed a liability of $1,000 on the property transferred. What is Sybil's tax basis in the stock received in the exchange?
A) $6,000.
B) $5,000.
C) $4,000.
D) $3,000.
Business
1 answer:
SCORPION-xisa [38]3 years ago
4 0

Answer:

D) $3,000

Explanation:

Calculation to calculate determine Sybil's tax basis in the stock received in the exchange

Tax basis $5,000

Add recognized gain $1,000

($6,000-$5,000)

Less boot received ($2,000)

Less liability ($1,000)

Sybil's tax basis $3,000

Therefore Sybil's tax basis in the stock received in the exchange will be $3,000

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2 years ago
During April, the first production department of a process manufacturing system completed its work on 375,000 units of a product
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Answer:

Using the weighted average method, the Equivalent units for material is:

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3 years ago
The output of MRP is: a. a schedule of planned orders for all parts and end items. b. net requirements. c. inventory reorder poi
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Answer:

a. a schedule of requirements for all parts and end items

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Answer:

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3 years ago
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