Question #3: Sam, Paul, Carlos and Jai form Pinochle Corporation by contributing the following assets to Pinochle: Basis

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Question 3 Sam Paul Carlos And Jai Form Pinochle Corporation By Contributing The Following Assets To Pinochle Basis 1 (47.41 KiB) Viewed 33 times

Question #3: Sam, Paul, Carlos and Jai form Pinochle Corporation by contributing the following assets to Pinochle: Basis to Fair Market # of Shares Other Prop. Transferor Value Issued Rec' by S/H Sam contributes: Inventory $30,000 $96,000 30 $6,000 Cash $99,000 30 $9,000 Cash Paul contributes: Equipment $45,000 Paul had taken $30,000 of depreciation in prior years Carlos Secret Formula $15,000 $90,000 30 Jai Cash $30,000 $30,000 10 a. What is Sam's recognized gain related to this transaction? b. What is Seth's basis in his Pinochle stock? C. What is Pinochle's basis in the inventory? d. What is Paul's recognized gain or loss? e. Is Paul's' gain or loss capital or ordinary? f. What is Paul's basis in his Pinochle stock? g. What is Pinochle's basis in the equipment? h. What is Carlos' recognized gain on the transaction? i. What is Pinochle's basis in the secret formula? j. What is Jai's recognized gain or loss? k. What is Jai's basis in his Pinochle stock?