Susan sweets is a 40 percent shareholder in acclaim inc a, Ask an Expert

Accounting

Susan Sweets is a 40 percent shareholder in Acclaim Inc., a theatrical supplies company. She transfers a fully depreciated car with a value of $2,000 to the corporation, but does not receive any consideration for it.

a.What are the tax consequences to Susan?
b.What are the tax consequences to the corporation?
c.What, if any, changes if Susan received another 10 percent stock interest for the car?

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M9965939

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