Sidney exchanged property with an adjusted basis of 25000, Ask an Expert

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Rod, sidney, and edgar decided to form Parody Corp. Rod trnasferred property with and adjusted basis of 35,000 and a fair market value of 44,000 for 440 share of stock. Sidney exchanged property with an adjusted basis of 25,000 and a fair market value of 33,000 for 330 shares of stock. Edgar performed services valued at 33,000 for 330 shares of stock. The fair market value of Parody Corp's stock is 100 per share. Which of the following statements is true?

A) Rod's recognized gain is 9,000

B) Sidney's basis is his stock is 25,000

C) Edgar's basis in his stock is 0

D) Parody's basis in the property that Rod transferred is 35,000

E) none of the above is true

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9445224

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