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Nancy, Guy, and Rod Form Goldfinch Corporation with the Following −0−50,000 \quad-0-\quad 50,000

Question 99

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Nancy, Guy, and Rod form Goldfinch Corporation with the following consideration.
Nancy, Guy, and Rod form Goldfinch Corporation with the following consideration. From Rod- Legal and accounting services to incorporate \quad-0-\quad 50,000 Goldfinch issues its 500 shares of stock as follows: 250 to Nancy, 200 to Guy, and 50 to Rod. In addition, Guy gets $50,000 in cash. a. Does Nancy, Guy, or Rod recognize gain or income)? b. What basis does Guy have in the Goldfinch stock? c. What basis does Goldfinch Corporation have in the inventory? In the land and building? d. What basis does Rod have in the Goldfinch stock?
From Rod-
Legal and accounting services to incorporate −0−50,000 \quad-0-\quad 50,000

Goldfinch issues its 500 shares of stock as follows: 250 to Nancy, 200 to Guy, and 50 to Rod. In addition, Guy gets
$50,000 in cash.
a. Does Nancy, Guy, or Rod recognize gain or income)?

b. What basis does Guy have in the Goldfinch stock?
c. What basis does Goldfinch Corporation have in the inventory? In the land and building?
d. What basis does Rod have in the Goldfinch stock?

Correct Answer:

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gain. Rod has ordinary income of $50,000...

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