PSYCHIATRY PRACTICE / TUTORIALOUTLET DOT COM

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PSYCHIATRY PRACTICE / TUTORIALOUTLET DOT COM
Psychiatry practice  FOR MORE CLASSES VISIT
www.tutorialoutlet.com Diane, Maria, Debbie, and
Susan incorporate their psychiatry practice
(Babbling Lunatics, Inc.) with the following
investments Diane contributes her copyright
(basis of 62,000 and FMV of 143,000) for 9500
shares of Lunatic stock, worth 93,500. The
corporation also assumed her 59,500 of business
debts.  Maria contributes her real estate (basis
of 465,000, FMV of 330,000) in exchange for
9100 shares of Lunatic stock, worth 425,000, and
received 77,000 cash.  Debbie contributes her
patent (basis of 272,000, FMV of 475,000) for
7300 shares of Lunatic stock, worth 371,000. The
corporation also assumed her 104,000 mortgage,
which Debbie took in order to pay her past due
gambling losses.  Susan contributes accounting
services to the corporation (basis of 0, FMV of
75,000) for 1,500 shares of Lunatic, Inc. stock,
worth 75,000. Calculate the following 1) Has
the 80 control requirement been met? Why or why
not? 2) Lunatics basis in the patent contributed
by Debbie 3) Marias realized and recognized
gains, if any.
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