Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation
in return for percent of the corporation's stock. The property transferred to the corporation had the
following fair market values and adjusted tax bases:
The corporation also assumed a mortgage of $ attached to the building and land. The fair market
value of the corporation's stock received in the exchange was $
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if
applicable.
Problem Part f Static
f Suppose the corporation assumed a mortgage of $ attached to the building and land. The fair market value of the
building is $ and the fair market value of the land is $ The fair market value of the stock remains $
What is Zhang's tax basis in the stock received in the exchange?
