Foluso Adu transfers assets with a fair market value of $250,000 to a corporation in...
80.2K
Verified Solution
Link Copied!
Question
Accounting
Foluso Adu transfers assets with a fair market value of $250,000 to a corporation in which he is the only shareholder. The assets have a cost of $160,000 and a UCC of $90,000. A transfer price of $90,000 is elected. As consideration, Foluso receives cash of $70,000 and shares with a fair market value and legal stated capital of $180,000. What is the reduction in paid up capital as a result of this transaction? $ 160,000 $ 110,000 $ 180,000 $ 20,000
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
- Unlimited Question Access with detailed Answers
- Zin AI - 3 Million Words
- 10 Dall-E 3 Images
- 20 Plot Generations
- Conversation with Dialogue Memory
- No Ads, Ever!
- Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Other questions asked by students
StudyZin's Question Purchase
1 Answer
$0.99
(Save $1 )
One time Pay
- No Ads
- Answer to 1 Question
- Get free Zin AI - 50 Thousand Words per Month
Best
Unlimited
$4.99*
(Save $5 )
Billed Monthly
- No Ads
- Answers to Unlimited Questions
- Get free Zin AI - 3 Million Words per Month
*First month only
Free
$0
- Get this answer for free!
- Sign up now to unlock the answer instantly
You can see the logs in the Dashboard.