Question

anet, Carol, Eva, and Wendy incorporate their law practice (“Shysters-R-Us, Inc.”) with the following investments: A) Janet contributes her copyright (basis of $60,000 and FMV of $144,000) for 9400 shares of Shyster stock, worth $98,000. The corporation also assumed her $46,000 of business debts. Janet’s basis in her Shyster stock.

Answer 1

Based on the basis of the stock that Janet contributed and the business debts assumed, Janet's basis in Shyster is $14,000.

What is Janet's basis?

This can be found as:

= Basis of the copyright that Janet contributed - Her business debts assumed

Solving gives:

= 60,000 - 46,000

= $14,000

Find out more on stock basis at https://brainly.com/question/20377743.

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