In: Accounting
In the current year, Ed, Frank, and George form Jet Corporation. Ed contributes land having a $35,000 FMV purchased four years ago for $15,000 in exchange for 35 shares of Jet stock. Fran contributes machinery purchased four years ago in exchange for 35 shares of Jet stock. The machinery had a $45,000 adjusted basis and a $35,000 FMV. George contributes services worth $30,000 in exchange for 30 shares of Jet stock.