Problemfeld the sole stockholder of maki corp paid 50000, Ask an Expert

Accounting

Problem:

Feld, the sole stockholder of Maki Corp., paid $50,000 for Maki's stock in Year 1. In Year 2, Feld contributed a parcel of land to Maki but was not given any additional stock for this contribution. Feld's basis for the land was $10,000, and its fair market value was $18,000 on the date of the transfer of title.

Required:

Question: What is Feld's adjusted basis for the Maki stock?

A. $50,000
B. $52,000
C. $60,000
D. $68,000

Note: Explain all calculation and formulas.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91165590

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