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Chip has an accrual-method, calendar-year sole proprietorship. On January 1,2019, he created an accrual-method, calendar-year...

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Accounting

Chip has an accrual-method, calendar-year sole proprietorship. On January 1,2019, he created an accrual-method, calendar-year corporation and transfer to corporation, in exchange for all of the corporations stock (1 class), a single asset as follows: Depreciable assets with an original cost of $100,000, adjusted basis of $30,000, value of $400,000, and holding period of 7 years. Vic joined Chip in January 1,2019, capitalization of corporation, with Vic contributing $200,0000. Chip got half of the stock and Vic got the other half of the stock. Chips assets is subject to non-recourse liability of $200,000.
Determine the following:
1. What is the value of the corporation immediately after section 351 event?
2. Determine the tax consequence for:
1. Chip
2. Corporation

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