Question

home / study / business / accounting / accounting questions and answers / For Bona Dude Business Purposes Dave Transferred The Following Property To X Corp., And X Assumed ... Question: For bona dude business purposes Dave transferred the following property to X Corp., and X assumed... For bona dude business purposes Dave transferred the following property to X Corp., and X assumed the &50,000 mortgage Building and land. Asset basis $120,000 Mortgage $50000 Fair market value $160000 Various equipment 60000. FMV 40000 In exchange Dave received 100% of Xs only class of stock. What is Xs basis in the property received after the exchange

Answer 1

In order to calculate X’s basis in the property received after exchange it is essential to consider the fair market value of the properties received after exchange. The fair market value of the properties has been added and the attached mortgage of land and building has been deducted from the sum to arrive at the basis of X on the property received after exchange.

Details	($)	($)
FMV of building and land	160,000.00
Less: Mortgage on the building	50,000.00
Building basis		110,000.00
Add: Fair market value of equipment		40,000.00
X's basis in the property		150,000.00