Frank, a cash basis taxpayer, incorporates his sole proprietorship. He transfers the follwoing to New Corp in exchange for 100% of the corporation's...

Frank, a cash basis taxpayer, incorporates his sole proprietorship. He transfers the follwoing to New Corp in exchange for 100% of the corporation's stock (value $185,000), and $40,000 in cash.Other property with an adjusted basis of $5,000 and Fair Market Value (FMV) of $5,000Land with an adjusted basis of $200,000 and FMV of $220,000The basis of the stock to Frank is

Adjusted BasisPropertyLandBook Value of Assets FMV 5000200000 5000220000225000 Share TransferredShareCash 18500040000 Basis of stock to frank is Fair market value of property.