O Apartment building 7 12 points John Connor converts his sole proprietorship into...
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O Apartment building 7 12 points John Connor converts his sole proprietorship into a C Corporation. The basis of the assets he transfers into his corporation is $65,000. The fair market value of those assets is $125,000. In return for these assets, Connor received all (100%) of the corporation's 20,000 shares of common stock. The basis of these assets to the corporation and the basis of the stock Connor receives are $65,000 corporate asset basis and S65,000 stock basis $125,000 corporate asset basis and S125,000 stock basis $65,000 corporate asset basis and S125,000 stock basis $125,000 corporate asset basis and $65.000 stock basis 8 12 points The following properties (all held long-term) are among those owned by the taxpayer in his business. The total amount of Section 1231 assets is S Inventory $20,000
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