Roberta and Sally formed the Alder Corporation on October 1, 2016. On the same date, Roberta paid $75,000 cash to Alder Corporation for 1,500 shares of the corporation's common stock. Simultaneously, Sally received 100 shares of Alder Corporation's stock for services rendered. How much should Sally include in her taxable income for 2016, and what will be the basis of her Alder Corporation stock?
Taxable Income Basis of Stock

Question

Roberta and Sally formed the Alder Corporation on October 1, 2016. On the same date, Roberta paid $75,000 cash to Alder Corporation for 1,500 shares of the corporation's common stock. Simultaneously, Sally received 100 shares of Alder Corporation's stock for services rendered. How much should Sally include in her taxable income for 2016, and what will be the basis of her Alder Corporation stock? ​
Taxable Income Basis of Stock

Quizplus · Accepted Answer

The Answer of Roberta and Sally formed the Alder Corporation on October 1, 2016. On the same date, Roberta paid $75,000 cash to Alder Corporation for 1,500 shares of the corporation's common stock. Simultaneously, Sally received 100 shares of Alder Corporation's stock for services rendered. How much should Sally include in her taxable income for 2016, and what will be the basis of her Alder Corporation stock? ​
Taxable Income Basis of Stock

Roberta and Sally Formed the Alder Corporation on October 1