Noah and olivia form the gray corporation with the following investment:
fmv
noah— cas...
Business, 18.12.2019 00:31 mistiehaas
Noah and olivia form the gray corporation with the following investment:
fmv
noah— cash $180,000
olivia— property (basis of $140,000) 200,000
each receives 1,000 shares of gray stock, but olivia also receives cash of $20,000. (each share of stock is worth $180.)
a. what is olivia’s recognized gain?
b. her basis in the gray stock?
c. what is gray’s basis in the property?
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