SlideShare a Scribd company logo
Required:
a) What amount of gain or loss does Ramona realize on the formation of the corporation? What
amount, if any, does Ramona recognize?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
b) What is Ramona's tax basis in the stock received in return for the contribution of property to
the corporation?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
c) What amount of gain or loss does Hermione realize on the formation of the corporation? What
amount, if any, does she recognize?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
d) What is Hermione's tax basis in the stock received in return for the contribution of property to
the corporation?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
e) What adjusted tax basis does Wiley Corporation take in the land and building received from
Hermione?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
f) Assume Hermione's adjusted tax basis in the land was $250,000. What amount of gain or loss
does Hermione realize on the formation of the corporation? What amount, if any, does she
recognize?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
g) Assume Hermione's adjusted tax basis in the land was $250,000. What adjusted tax basis does
Wiley Corporation take in the land and building received from Hermione?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
h) Assume Hermione's adjusted tax basis in the land was $312,500. What amount of gain or loss
does Hermione realize on the formation of the corporation? What amount, if any, does she
recognize?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
i) Assume Hermione's adjusted tax basis in the land was $312,500. What adjusted tax basis does
Wiley Corporation take in the land and building received from Hermione?
Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a
minus sign.
j) Assume Hermione's adjusted tax basis in the land was $312,500. What election can Hermione
and Wiley Corporation make to allow Wiley Corporation to take a carryover basis in the land?
Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of
$250 , 000 in return for 50 percent of the corporation's stock. Hermione contributed a building
and land with the following fair market values and adjusted tax bases in return for 50 percent of
the corporation's stock: To equalize the exchange, Wiley Corporation paid Hermione $62 , 500
in addition to her stock.

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Required- a) What amount of gain or loss does Ramona realize on the fo.pdf

  • 1. Required: a) What amount of gain or loss does Ramona realize on the formation of the corporation? What amount, if any, does Ramona recognize? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. b) What is Ramona's tax basis in the stock received in return for the contribution of property to the corporation? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. c) What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. d) What is Hermione's tax basis in the stock received in return for the contribution of property to the corporation? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. e) What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. f) Assume Hermione's adjusted tax basis in the land was $250,000. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. g) Assume Hermione's adjusted tax basis in the land was $250,000. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign.
  • 2. h) Assume Hermione's adjusted tax basis in the land was $312,500. What amount of gain or loss does Hermione realize on the formation of the corporation? What amount, if any, does she recognize? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. i) Assume Hermione's adjusted tax basis in the land was $312,500. What adjusted tax basis does Wiley Corporation take in the land and building received from Hermione? Note: Leave no answer blank. Enter zero if applicable. Negative amount should be indicated by a minus sign. j) Assume Hermione's adjusted tax basis in the land was $312,500. What election can Hermione and Wiley Corporation make to allow Wiley Corporation to take a carryover basis in the land? Ramona and Hermione formed Wiley Corporation on January 2. Ramona contributed cash of $250 , 000 in return for 50 percent of the corporation's stock. Hermione contributed a building and land with the following fair market values and adjusted tax bases in return for 50 percent of the corporation's stock: To equalize the exchange, Wiley Corporation paid Hermione $62 , 500 in addition to her stock.