Required information [The following information applies to the questions displayed below.] 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. Building. Land Total FMV $ 93,750 218,750 $ 312,500 Adjusted Tax Basis $ 25,000 100,000 $ 125,000 To equalize the exchange, Wiley Corporation paid Hermione $62,500 in addition to her stock. 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. Tax basis Check m
Required information [The following information applies to the questions displayed below.] 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. Building. Land Total FMV $ 93,750 218,750 $ 312,500 Adjusted Tax Basis $ 25,000 100,000 $ 125,000 To equalize the exchange, Wiley Corporation paid Hermione $62,500 in addition to her stock. 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. Tax basis Check m
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 30P
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Please do not give solution in image format.... and give solution in steps...
![Required information
[The following information applies to the questions displayed below.]
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.
Building.
Land
Total
FMV
$ 93,750
218,750
$ 312,500
Adjusted Tax
Basis
$ 25,000
100,000
$ 125,000
To equalize the exchange, Wiley Corporation paid Hermione $62,500 in addition to her stock.
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.
Tax basis
Check m](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Febdf8355-7667-43c5-9b0f-d60b57454650%2Ffc24db0e-c663-4e57-966f-4eebc3ec3628%2Fksuuj4_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Required information
[The following information applies to the questions displayed below.]
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.
Building.
Land
Total
FMV
$ 93,750
218,750
$ 312,500
Adjusted Tax
Basis
$ 25,000
100,000
$ 125,000
To equalize the exchange, Wiley Corporation paid Hermione $62,500 in addition to her stock.
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.
Tax basis
Check m
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