Ask Question, Ask an Expert


Ask Accounting Basics Expert

Al owned all of the outstanding stock of ABC Corporation. Al transferred a building, cash, and IBM stock to ABC Corporation. The adjusted basis and the fair market value of the assets transferred to ABC Corporation, and the amount remaining on the mortgage on the building transferred, were as follows. A building was transferred by Al to ABC Corporation that had an adjusted basis to Al of $20,000, a fair market value of $50,000, and a mortgage of $40,000, that was assumed by the corporation, cash in the amount of $10,000 was transferred, and IBM stock with an adjusted basis to Al of $15,000 and a fair market value of $12,000. In exchange for the assets transferred to ABC Corporation, Al received additional stock of ABC Corporation. How much gain did Al recognize as a result of this transaction?

Accounting Basics, Accounting

  • Category:- Accounting Basics
  • Reference No.:- M947137

Have any Question? 

Related Questions in Accounting Basics

Discussion questions- intermediate accounting 22please

Discussion Questions- Intermediate Accounting 22 Please answer each of the 4 question compounds in at least 200 words., for an 800 word total paper. Please asnwer them individually. Thank you 1. What is a change in accou ...

James lives in maryland but works in virginia john lives in

James lives in Maryland but works in Virginia. John lives in Virginia but works in Maryland. John believes he has been taken advantage of by Jim in a business dealing. John has paid Jim a down payment to paint his house ...

A taxpayer lives in michigan in a controversy with the irs

A taxpayer lives in Michigan. In a controversy with the IRS, the taxpayer loses at the trial court level. Describe the appeal procedure for each of the following trial courts: a. Small Cases Division of the U.S. Tax Cour ...

Estimating cash flowsassume that your company is

Estimating Cash Flows Assume that your company is considering the replacement of an automated milling machine with one of the new machines offered by three different manufacturers. Each of the three machines under consid ...

Mulberry corporation has an august 31 year-end mulberry had

Mulberry Corporation has an August 31 year-end. Mulberry had $50,000 in accumulated E & P at the beginning of its 2015 fiscal year (September 1, 2014) and during the year, it incurred a $75,000 operating loss. It also di ...

Writing assignmentthe writing assignment has to be between

Writing Assignment The writing assignment has to be between 650-700 words. With 2-3 references to follow, one in particular has to be from the book we are studying out of: Intermediate accounting (7th ed.). Spiceland, Se ...

Imagine that you are a tax consultant and must determine

Imagine that you are a tax consultant and must determine the most appropriate business structure for a small business entity. Compare and contrast S-Corporations, C-Corporations, and Partnerships in terms of tax conseque ...

Task - task covers study schedule weeks 5-12 inclusiveq21-

Task - Task covers study schedule weeks 5-12 inclusive. Q2.1- Naming cells in spreadsheets Critically evaluate a YouTube video on naming cells in spreadsheets. What are the advantages of naming cells in formulas Paste an ...

Identifying account titles-the following are independent

Identifying Account Titles- The following are independent situations. a. A new company is formed and sells 100 shares of stock for $12 per share to investors. b. A company purchases for $18,000 cash a new delivery truck ...

Accounting questionsin the last module we discussed the

Accounting Questions: In the last module we discussed the reactive approach that can (and has been) taken by corporations to identify current fraudulent activities. The issue with this approach is that by the time corpor ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate