Winkin contributes property with a value of $45,000 and Blinkin contributes property with a value of $90,000 to form Boat Corp in exchange for 25 and 50 shares of Boat, respectively. Which shareholder qualifies for Section 351 deferral of any gain or loss

Winkin, with 25 shares of Boat Corporation, qualifies for Section 351 deferral of any gain or loss.

Explanation:

IRC Section 351 has this major requirement; it only applies to the exchange of property for voting stock in the corporation. If any shareholder involved in the transaction receives equity for something other than voting stock, e.g. services; the transaction may not qualify for tax deferral.

the investment was $14,174.196

explanation:

a lump sum means that the father of the example made one deposit and leave it be.

we need to know the value of a capital that generated at 4.05% per year during 28 years the sum of $48,613.24

now clearing the formula to solve for capital we got:

and we reach the answer investment = $14,174.20

answer; balance sheets;