a. Identify significant tax and nontax issues or concerns that may differ across entity types. b. Provide your recommendation for forming CCS as a C corporation S corporation LLC or partnership. Explain your reasoning for your choice of entity identify any issues that you may still be concerned about and suggest recommendations for dealing with the concerns. Chapter 19 Problem 39 (LO2) Zhang incorporated her sole proprietorship by transferring inventory a building and land to the corporation in return for 100 percent of the corporation?s stock. The property transferred to the corporation had the following fair market values andAccounting Study tax-adjusted bases: FMV Tax-Adjusted Basis Inventory $ 20000 $ 10000 Building 150000 100000 Land 230000 300000 Total $400000 $410000 The corporation also assumed a mortgage of $100000 attached to the building and land. The fair market value of the corporation?s stock received in the exchange was $300000. The transaction met the requirements to be tax-deferred under ?351. a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation? b. What amount of gain or loss does Zhang recognize on the transfer of the property to her corporation? c. What is Zhang?s tax basis in the stock she receives in the exchange? d. What is the corporation?s tax-adjusted basis in each of the assets received in the exchange? Assume the corporation assumed a mortgage of $500000 attached to the building and land. e. How much if any gain or loss does Zhang recognize on the exchange assuming the revised facts? f. What is Zhang?s tax basis in the stock she receives in the exchange? g. What is the corporation?s tax-adjusted basis in each of the assets received in the exchange?”
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