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...


What basis does Forest Corporation has in:



  • Equipment




  • Land




  • Office equipment


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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