Cam, Mike, and Carson form Comptrol Corporation and transfer the following items to Comptrol:

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Cam, Mike, and Carson form Comptrol Corporation and transfer the following items to Comptrol:

Requirements

a.
Is the exchange nontaxable under Sec. 351? Explain the tax consequences of the exchange to

Cam, Mike, Carson, and Comptrol.
b.
How would your answer to Part a change if Mike instead had received 300 shares of common stock and

300 shares of preferred stock?
c.
How would your answer to Part a change if Carson instead had contributed $1,100 cash as well as services worth

$6,500?
Requirement a. Is the exchange nontaxable under Sec. 351? Explain the tax consequences of the exchange to Cam, Mike, Carson, and Comptrol.

 
as nontaxable under Sec. 351.
 

Cam recognizes
$
 
 
on the transfer of the patent.
Cam's basis in his Comptrol stock is
$
 
.
 

Mike recognizes
 
Mike's basis in the preferred stock is
$
 
.
 

Carson recognizes
 
Carson's basis in his Comptrol stock is
$
 
.
 

Comptrol recognizes
 
on the exchange. Comptrol's basis for the assets are:
 
 
Requirement b. How would your answer to Part a change if Mike instead had received 300 shares of common stock and 300 shares of preferred stock?

 
as nontaxable under Sec. 351.
 

Cam recognizes
 
Cam's basis in his Comptrol stock is
 
 

Mike recognizes
 
Mike's basis in his Comptrol stock is
$
 
 
 

Carson recognizes
 
Carson's basis in his Comptrol stock is
$
 
.
 

Comptrol recognizes
no gain or loss.
on the exchange. Comptrol's basis for the assets are:
cash, $24,000; patent, zero; and services, $7,600.
 
Requirement c. How would your answer to Part a change if Carson instead had contributed $1,100

cash as well as services worth $6,500?

 
as nontaxable under Sec. 351.
 

Cam recognizes
 
Cam's basis in his Comptrol stock is
 
                                   

Mike recognizes
 
Mike's basis in his Comptrol stock is
$
 
.
      

Carson recognizes
 
Carson's basis in his Comptrol stock is
$
 
.
 

Comptrol recognizes
 
on the exchange. Comptrol's basis for the assets are:
 
 
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