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Corporation for 100% of the stock in Camel

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Adam transfers cash of $300,000 and land worth $200,000 to Camel

Corporation for 100% of the stock i 1 answer below » Adam transfers cash of $300,000 and land worth $200,000 to Camel

Corporation for 100% of the stock in Camel. In the first year of

operation, Camel has net taxable income of $70,000. If Camel

distributes $50,000 to

Adam, Adam has taxable income of $50,000. Camel Corporation has a tax

deduction of $50,000. Adam has no taxable income

from the distribution. Camel Corporation reduces its

basis in the land to $150,000. & View complete question » Adam transfers cash of $300,000 and land worth $200,000 to Camel

Corporation for 100% of the stock in Camel. In the first year of

operation, Camel has net taxable income of $70,000. If Camel

distributes $50,000 to

Adam, Adam has taxable income of $50,000. Camel Corporation has a tax

deduction of $50,000. Adam has no taxable income

from the distribution. Camel Corporation reduces its

basis in the land to $150,000. None of the above View less » Aug 05 2015 12:01 AM


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