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Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation...

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Accounting

Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases:

FMV Adjusted Basis
Inventory $ 52,000 $ 26,000
Building 390,000 260,000
Land 598,000 780,000
Total $ 1,040,000 $ 1,066,000

The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $940,000. The transaction met the requirements to be tax-deferred under 351. (Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.)

c. What is Zhangs tax basis in the stock she receives in the exchange?

Assume the corporation assumed a mortgage of $1,140,000 attached to the building and land. Assume the fair market value of the building is now $650,000 and the fair market value of the land is $1,378,000. The fair market value of the stock remains $940,000.

g. What is the corporations adjusted basis in each of the assets received in the exchange?

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