Kamir and javon form kj corporation, with each receiving 50% of the stock. kamir contributes equipment with a fair market value of $100,000 and an adjusted basis of $55,000, as well as services with a value of $15,000. javon contributes $115,000 in cash. what is kamir’s basis in the kj stock?

Adjusted basis for Kamir's share = $70,000

Explanation:

Adjusted basis for any share, is the original cost or value, and does not represent fair value, for any share.

Therefore, for calculating the adjusted basis for Kamir, the original value of all the contributions made by him will be considered.

His contributions are:

Equipment with fair value = $100,000 and adjusted basis = $55,000

Services with a value = $15,000

As for equipment adjusted basis is provided, therefore, that will be considered, and for services assuming this is the adjusted basis as not provided, $15,000 will be considered.

Therefore, adjusted basis for Kamir's share = $55,000 + $15,000 = $70,000.

both are integral parts of a corporate balance sheet. the cash flow statement, or statement of cash flows, measures the sources of a company's cash and its uses of cash over a specific time period. the income statement measures a company's financial performance, such as revenues, expenses, profits or losses over a specific time period (in fact, it's sometimes called a statement of financial performance).

a cash flow statement shows exactly how much money a company has received and how much it has spent, traditionally over a period of one month. it captures the current operating results and changes on the balance sheet, such as increases or decreases in accounts receivable or accounts payable, and does not include noncash accounting items such as depreciation and amortization. the cash flow generally comes from revenue received as a result of business activity, but it may be augmented by funds available as a result of credit. a cash flow statement is used to determine the short-term viability and liquidity of a company, specifically how well it is positioned to pay its bills and vendors.

answer; according to the ( irs );