Business, 06.06.2020 03:00 danny223

Ken and Jim formed Oakland Company on January 2. Ken contributed cash of $450,000 in return for 50 percent of the corporation's stock. Jim contributed a property in return for 50 percent of the corporation's stock. The property Jim transferred to the corporation had a fair market value of $350,000 and a tax-adjusted basis of $200,000. To equalize the exchange, Oakland Company paid Jim $100,000 in addition to his stock. Assuming the transactions met the requirements under §351, determine Jim's tax basis in the stock he receives in return for his contribution of property to the corporation. a) $200,000.b) $250,000.c) $50,000.d) $350,000.e) $150,000.

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Ken and Jim formed Oakland Company on January 2. Ken contributed cash of $450,000 in return for 50 p...