Journal entries for 357(c)

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#1
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59
Joined:
24-Jan-2017 1:57am
Location:
Guam
Dear all,

I have a quick question regarding what would be the journal entries for these two situations for Section 357(c) transactions:

Situation #1
Aggregate adjust basis of all assets being transferred to corporation: $300,000
Aggregate loan liability being transferred to corporation: $100,000

If this is the case, would journal entries for the corporation be:
Dr. Fixed asset $300,000
Cr. Liability $100,000
Cr. Common Stock $200,000

Situation #2
Aggregate adjust basis of all assets being transferred to corporation: $100,000
Aggregate loan liability being transferred to corporation: $300,000

If this is the case, would journal entries for the corporation be:
Dr. Fixed asset $300,000
Cr. Liability $300,000

I came up with the journal entries, but would really appreciate correction if these are incorrect for the situation.
 

#2
juro  
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918
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18-Oct-2015 9:11am
Location:
USA
Situation #2 needs a debit to Notes R/ for the promissory note of $200k.
 

#3
sjrcpa  
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6422
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23-Apr-2014 5:27pm
Location:
Maryland
 


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