Tax Researh memo (Corporate Formation and Basis Calculation)
5 pages (1250 words)
, Research Paper
The corporation will develop, manufacture and distribute radar detectors. Acme, Inc. will require a land, a building, equipment, legal services and know-how to create software that will mass produce the road runner trap. Barry Brown decides to contribute the land and the building, with the land having a basis of $60,000 and an FMV of $80,000, and the building having a basis of $90,000 and an FMV of $200,000.