Angie and Brad form Cats Are Us, Inc. Angie contributes $120,000 cash for 60% of the stock. Brad contributes an asset with an FMV of $90,000 and an adjusted basis of $30,000 for 40% of the stock. Brad also receives $10,000 cash from the corporation. What is the corporation's basis in the asset received from Brad?
Ans: whenever an organisation receives any asset contributed by its shareholder its basis would be the basis of shareholder increased by any amount by it on that asset.
Therefore the corporation's basis in the asset received from Brad = $ 30000 +10000
= $ 40000
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