In the current year, Emrah, a cash basis taxpayer, incorpora…
In the current year, Emrah, a cash basis taxpayer, incorporated his CPA practice. No liabilities were transferred. The following assets were transferred to the corporation: Cash (checking account) $500 Computer equipment: Adjusted Basis 30,000Fair Market Value 34,000Cost 40,000Immediately after the transfer, Emrah owned 100% of the corporation’s stock. The corporation’s total basis in the transferred assets is: