Comprehensive Problem; 14-107: Jones, Able, and Smith want to form Shriver Corpo

Question

Comprehensive Problem; 14-107: Jones, Able,   and Smith want to form Shriver Corporation. They want to accomplish this in   the most tax   efficient (least costly) way possible. They have asked for advice. The   counselor will receive   $10,000 (in stocks and bonds). The relevant information follows: PARTY GIVES RECEIVES Jones FMV Adj. Basis Machine $100,000 $70,000 * Land $40,000 $20,000 (1) 25 shares of stock Building $65,000 $45,000 ** (2) $20,000 * Acquired for $85,000; s.l.   depreciation taken ** Acquired for $70,000; s.l. dep.   Taken; liab. Of $60,000 assumed by Shriver Corp. Able Machine $70,000 $80,000 * (1) 8 shares of stock Building $50,000 $65,000 ** (2) 2 10-year bonds (3) $5,000 * Acquired for $95,000' s.l.   depreciation taken ** Acquired for $75,000; s.l.   depreciation taken liability of $70,000 is on the   property Smith Machine $80,000 $80,000 Automobile $15,000 $10,000 * (1) 23 shares of stock Truck $40,000 $30,000 ** (2) 8 10-year bonds * Acquired for $15,000; s.l.   depreciation taken ** Acquired for $40,000; s.l.   depreciation taken Counselor Services $10,000 (1) 1 share of stock (2) 2 10-year bonds Determinbe   all tax consequences for Jones, Able, Smith, the counselor, and Shriver   Corporation assuming the   transfer occurred in 2012. Also assume that Jones, Able, and Smith are   unrelated parties. Comprehensive Problem; 14-107: Jones, Able,   and Smith want to form Shriver Corporation. They want to accomplish this in   the most tax   efficient (least costly) way possible. They have asked for advice. The   counselor will receive   $10,000 (in stocks and bonds). The relevant information follows: PARTY GIVES RECEIVES Jones FMV Adj. Basis Machine $100,000 $70,000 * Land $40,000 $20,000 (1) 25 shares of stock Building $65,000 $45,000 ** (2) $20,000 * Acquired for $85,000; s.l.   depreciation taken ** Acquired for $70,000; s.l. dep.   Taken; liab. Of $60,000 assumed by Shriver Corp. Able Machine $70,000 $80,000 * (1) 8 shares of stock Building $50,000 $65,000 ** (2) 2 10-year bonds (3) $5,000 * Acquired for $95,000' s.l.   depreciation taken ** Acquired for $75,000; s.l.   depreciation taken liability of $70,000 is on the   property Smith Machine $80,000 $80,000 Automobile $15,000 $10,000 * (1) 23 shares of stock Truck $40,000 $30,000 ** (2) 8 10-year bonds * Acquired for $15,000; s.l.   depreciation taken ** Acquired for $40,000; s.l.   depreciation taken Counselor Services $10,000 (1) 1 share of stock (2) 2 10-year bonds Determinbe   all tax consequences for Jones, Able, Smith, the counselor, and Shriver   Corporation assuming the   transfer occurred in 2012. Also assume that Jones, Able, and Smith are   unrelated parties.

Explanation / Answer

there is a boot of $20,000, but I am not sure if there is any gain?

Related Questions

Navigate

• Browse (All)
• Browse C
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.