Ann and bob form robin corp ann transfers property worth, Ask an Expert

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Ann and Bob form Robin Corp. Ann transfers property worth $420,000(basis of 150,000) for 70 shares in Robin Corp. Bob receives 30 shares for property worth $165,000(basis of $30,000) and for legal services (worth $15,000) in organizing the corporation.

A) What gain or income, if any, will the parties recognize on the transfer?

B) What basis do Ann and Bob have in the stock in Robin Corporation?

C) What is Robin Corporation's basis in the property and services it received from Ann and Bob?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9969626

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