Question

Evan is the sole shareholder of Corporation. Evan transferred real estate to Corporation in exchange for all of the stock of Corporation. The real estate was a capital asset in Evan’s hands and will also be a capital asset when held by the corporation. Evan’s basis in the real estate was $10,000 and the value of the real estate was $8,000 on the date of the transfer. If Evan received $2,000 in cash and 100 shares of stock from the corporation in exchange for the real estate, the resulting bases for Evan’s stock and the corporations real estate are:

Group of answer choices

Evan’s stock basis is $8,000; Corporation’s basis in the real estate is $8,000

Evan’s stock basis is $10,000; Corporation’s basis in the real estate is $10,000

Evan’s stock basis is $10,000; Corporation’s basis in the real estate is $8,000

Evan’s stock basis is $6,000; Corporation’s basis in the real estate is $12,000

Answer 1

The in basis resulting bases for Evan's stock and the corporatione real estate are Answer: Evan's stock basis gis $ 8000; Couponaélion's basis in the besis in the real estate is 98000 . Explanations : The stock basis is § 8ooo, the es the real estate is The capital asset is to be recondeed at fair value on the date of transfer 9.e. $ 8000 and as Evan has received $2000 in cash and & 8000 in stoun. The stock basis evan is $ 8000 in the in the corporation. Corporation's is Ø 2000) of