5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock....

5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers<br>a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax<br>consequences to all of the parties?<br>(b) Suppose that in addition to transferring the services contract, A transfers cash of 20. A still receives 5096<br>of the stock. How would this change your answer?<br>() Suppose instead that in addition to transferring the services contract, A transfers cash of just 1 How<br>would this change your answer?<br>

Extracted text: 5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties? (b) Suppose that in addition to transferring the services contract, A transfers cash of 20. A still receives 5096 of the stock. How would this change your answer? () Suppose instead that in addition to transferring the services contract, A transfers cash of just 1 How would this change your answer?

Jun 11, 2022

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5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock. B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock....

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