Herman Munster, Lillie Munster, and Vlad Munster form Munster Coffin Company in 2019. Peter Parker...
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Accounting
Herman Munster, Lillie Munster, and Vlad Munster form Munster Coffin Company in 2019. Peter Parker was hired by Munster Coffin Company to aid in the incorporation process. The following items were transferred by and to each party:
Adjusted Basis FMV Munster Stock Bonds
To Transferor
Herman Munster:
Realty 30,000 55,000 10
Mortgage 50,000 50,000
Lillie Munster:
Accounts receivable ---0--- 20,000 35
Equipment 15,000 10,000
Cash 5,000 5,000
Vlad Munster:
Equipment 15,000 20,000 20 5
Truck 10,000 5,000
Peter Parker:
Professional services ---0--- 5,000 5
The value of each share of the stock is $500. The value of the bond is $1,000. The mortgage transferred by Herman Munster is assumed by Munster Coffin Co. Indicate each partys recognized gain or loss, allocation of boot (not always the same as recognized gain), and each partys basis in all properties received.
Herman Munster:
Basis 5 Shares: Recognized Gain:
Lillie Munster:
Basis in 35 shares Recognized Gain:
Vlad Munster:
Basis in 20 shares Recognized Gain:
Basis in 5 Bonds
Allocation of Boot: Truck: Equipment:
Peter Parker:
Basis in 5 shares Recognized Gain:
Munster Coffin Co.:
Basis: Realty
Accounts receivable
Equipment (Lillie)
Cash
Equipment (Vlad)
Truck Recognized Gain
Answer & Explanation
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