Elaine, James, and Jeremy form Forest Corporation by transferring the following items to the corporation: Items transferred Basis Fair Market Value Number of Shares Issued From Elaine: Cash Equipment...


Determine the amount of income, gain or loss (if any) thatElaine has from this transaction.


Elaine, James, and Jeremy form Forest Corporation by transferring the following items to the<br>corporation:<br>Items transferred<br>Basis<br>Fair Market Value<br>Number of Shares<br>Issued<br>From Elaine:<br>Cash<br>Equipment<br>$60,000<br>30,000<br>$60,000<br>340,000<br>200 shares<br>From James:<br>Land<br>Mortgage<br>100,000<br>140,000<br>200 shares<br>540,000<br>140,000<br>From Jeremy:<br>Office equipment<br>50,000<br>260,000*<br>100 shares<br>Besides the receiving 100 shares of stock, Jeremy also received $60,000 of cash. Forest<br>Corporation assumed the mortgage transferred by James.<br>

Extracted text: Elaine, James, and Jeremy form Forest Corporation by transferring the following items to the corporation: Items transferred Basis Fair Market Value Number of Shares Issued From Elaine: Cash Equipment $60,000 30,000 $60,000 340,000 200 shares From James: Land Mortgage 100,000 140,000 200 shares 540,000 140,000 From Jeremy: Office equipment 50,000 260,000* 100 shares Besides the receiving 100 shares of stock, Jeremy also received $60,000 of cash. Forest Corporation assumed the mortgage transferred by James.

Jun 11, 2022
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