Learning Goal: I'm working on a accounting discussion question and need guidance to help me learn.
dentify at least two main tax issues suggested for each of the scenarios described below:
Peter Jones has owned all 100 shares of Trenton Corporation stock for the past five years. This year, Mary Smith contributes property with a $50,000 basis and an $80,000 FMV for 80 newly issued Trenton shares. At the same time, Peter contributes $15,000 in cash for 15 newly issued Trenton shares. What tax issues regarding the exchanges should Mary and Peter consider?
Aloha Inc. sells timeshares in Hawaii. Gerry bought a timeshare from Aloha Inc,. He agrees to pay $10,000 down and Aloha Inc. will finance a seven year note for the balance of the purchase price at the current market rate of interest. Identify the issues for Aloha Inc.