ameri0903 asked:


In the current year David incorporates his carpet cleaning business which has been run as a single proprietorship for 5 years. He transfers the following asset to the business:

How much taxable gain will David recognize from the transfer of the assets to the corporation?

What is the corporation’s basis in this asset?

If David sells his stock in the new corporation to Bob for $71,000, what is the amount of his gain?

Halley