Question

Three individuals form Samson Corporation with the following contributions: Craig, cash of $50,000 for 50 shares; Brandon, land worth $20,000 (basis of $11,000) for 20 shares; and Russ, cattle worth $9,000 (basis of $7,500) for 9 shares and services worth $21,000 for 21 shares.

Group of answer choices

Russ’ basis in his stock is $28,500.

Brandon’s basis in his stock is $20,000.

These transfers are fully taxable and not subject to § 351.

Russ’ basis in his stock is $7,500.

None of these.

Answer 1