Alice and Jane form Osprey Corporation. Alice transfers property (basis of $25,000 and value of $200,000) for 50 shares in Osprey Corporation. Jane transfers property (basis of $50,000 and value of $165,000) and agrees to serve as manager of Osprey for one year; in return, Jane receives 50 shares in Osprey. The value of Jane's services to Osprey is $35,000.
A. What gain or income do Alice and Jane recognize on the exchange?
B. What is Osprey Corporation's basis in the property transferred by Alice and Jane? How does Osprey treat the value of the services that Jane renders?
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Alice and Jane form Osprey Corporation. Alice transfers property (basis of $25,000 and value of $200,000) for 50 shares in Osprey ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
How much money will you have when you invest $1,000 at 12% interest rate for 48 years
Answers (1)
A benefit of using a debit or credit card instead of cash is that it provides a paper record of a perchase. When might a proof ownership be needed? A. when applying for a credit card. B. When claiming a warranty. C. When using a cash card. D.
Answers (2)
According to the principle of comparative advantage, worldwide output and consumption will be higher when nations specialize in the production of those goods and services a. they can provide at a lower opportunity costs. b.
Answers (1)
When there is an improvement in technology, holding all else constant, A. the production possibilities frontier will shift inward B. society faces larger opportunity costs from shifting productive resources from one use to another C.
Answers (1)
Citations are used primarily to
Answers (2)
New Questions in Business
A property will provide $10,000 at the end of each year forever. if its value is $125,000, what must be the discount rate?
Answers (2)
On July 1, Shady Creek Resort borrowed $250,000 cash by signing a 10-year, 8% installment note requiring equal payments each June 30 of $37,258. What is the appropriate journal entry to record the issuance of the note? A.
Answers (1)
A person driving a car has the duty to exercise what standard of care?
Answers (1)
Organizations face three kinds of specific buying situations. they are new buy, straight rebuy, and modified rebuy. collectively, these situations are called:
Answers (1)
Widmer Company had gross wages of $310,000 during the week ended June 17. The amount of wages subject to social security tax was $310,000, while the amount of wages subject to federal and state unemployment taxes was $35,000.
Answers (1)