Barry and Irv form Swift Corporation. Barry transfers cash of $100,000 and equipment (basis of $300,000 and fair market value of $400,000) for 50% of Swift's stock. Irv transfers land and building (basis of $510,000 and fair market value of $450,000) and agrees to manage the business for one year for the other 50% of Swift's stock. The value of Irv's services for one year is $50,000.

Question

Barry and Irv form Swift Corporation. Barry transfers cash of $100,000 and equipment (basis of $300,000 and fair market value of $400,000) for 50% of Swift's stock. Irv transfers land and building (basis of $510,000 and fair market value of $450,000) and agrees to manage the business for one year for the other 50% of Swift's stock. The value of Irv's services for one year is $50,000.
Barry and Irv form Swift Corporation. Barry transfers cash of $100,000 and equipment (basis of $300,000 and fair market value of $400,000) for 50% of Swift's stock. Irv transfers land and building (basis of $510,000 and fair market value of $450,000) and agrees to manage the business for one year for the other 50% of Swift's stock. The value of Irv's services for one year is $50,000.

Quizplus · Accepted Answer

The Answer of Barry and Irv form Swift Corporation. Barry transfers cash of $100,000 and equipment (basis of $300,000 and fair market value of $400,000) for 50% of Swift's stock. Irv transfers land and building (basis of $510,000 and fair market value of $450,000) and agrees to manage the business for one year for the other 50% of Swift's stock. The value of Irv's services for one year is $50,000.

Barry and Irv Form Swift Corporation