Barry and Irv form Rapid Corporation. Barry transfers cash of $150,000 and equipment (basis of $300,000 and fair market value of $350,000) for 50% of Rapid's stock. Irv transfers land and building (basis of $510,000 and fair market value of $425,000) and agrees to manage the business for one year for the other 50% of Rapid's stock. The value of Irv's services for one year is $75,000.

Question

Barry and Irv form Rapid Corporation. Barry transfers cash of $150,000 and equipment (basis of $300,000 and fair market value of $350,000) for 50% of Rapid's stock. Irv transfers land and building (basis of $510,000 and fair market value of $425,000) and agrees to manage the business for one year for the other 50% of Rapid's stock. The value of Irv's services for one year is $75,000.
Barry and Irv form Rapid Corporation. Barry transfers cash of $150,000 and equipment (basis of $300,000 and fair market value of $350,000) for 50% of Rapid's stock. Irv transfers land and building (basis of $510,000 and fair market value of $425,000) and agrees to manage the business for one year for the other 50% of Rapid's stock. The value of Irv's services for one year is $75,000.

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The Answer of Barry and Irv form Rapid Corporation. Barry transfers cash of $150,000 and equipment (basis of $300,000 and fair market value of $350,000) for 50% of Rapid's stock. Irv transfers land and building (basis of $510,000 and fair market value of $425,000) and agrees to manage the business for one year for the other 50% of Rapid's stock. The value of Irv's services for one year is $75,000.

Barry and Irv Form Rapid Corporation