Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. kesha, a sole proprietor, is engaged in a cash bas

Kesha, a sole proprietor, is engaged in a cash basis service business. In the current...

80.2K

Verified Solution

Question

Accounting

Kesha, a sole proprietor, is engaged in a cash basis service business. In the current year, she incorporates the business to form Kiwi Corporation. She transfers assets with the basis of $500,000 (fair market value of $1.2 million), a bank loan of $450,000 (which Kiwi assumes), and $80,000 in trade payables in return for all of Kiwis stock. What are the tax consequences of the incorporation of the business?

Answer & Explanation Solved by verified expert
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!
Become a Member

Other questions asked by students

Q

A manager of an inventory system believes that inventory models are important decision-making aids. The manager...

Statistics
Q

Discuss in detail the evolution of commercial air travel on society.

Operations Management
Q

What are the principal forms of violence against women? According to the World Health Organization, how...

Psychology
Q

have DRGs actually reduced health care costs?

General Management
Q

V and W are finite dimensional inner product spaces,T: V?W is a linear map 1A: Give an...

Advance Math
Q

Hazelnut Corp. manufactures lawn ornaments. It currently has two product lines, the basic and the luxury....

Accounting
Q

5 If R is the radius of the earth and g the acceleration due to...

Physics
Q

A work sampling study is to be conducted on rush hour traffic 4 00 p...

Basic Math
Q

McDonalds wanted to find out the favorite sandwich of teen-agers from the ages of 15...

Basic Math
Q

Pigot Corporation uses job costing and the budgeted manufacturing costs for the year are as...

Accounting
Q

plz help Dividends and interest receivable would be classified as notes receivable....

Accounting
Q

Providence Hospital generates monthly performance reports for each of its departments. The hospital must maintain...

Accounting