Dennis contributed business assets to a new business in exchange for stock in the company. The exchange did not qualify as a tax-deferred exchange. The fair market value of these assets was $298,000 on the contribution date. Dennis’s original basis in the assets he contributed was $163,000, and the accumulated depreciation on the assets was $102,250.
Answer:- Determine business basis in the assets a:- Since, the transaction did not qualify as a nontaxable exchange, the business basis in Dennis assets will be equal to the fair market value of the assets. Hence, the business basis will be ... See the full answer