- 4 - Asset Description Adjusted Basis Fair Market Value Depreciable property $53,601 $143,760 Inventory -0- 120,980 Fertilizer & lime -0- 1,360 Hay, straw, & oats -0- 7,340 Market livestock -0- 7,500 Cattle feed -0- 900 Gas & diesel -0- 1,400 Miscellaneous tools -0- 3,000 Land, building, & grain 10,000 140,180 Cash 2,600 2,600 Improvements to Craig Seggerman’s house -0- 1,400 Accounts receivable -0- 1,440 Deficiency payments -0- 13,960 Total 66,201 445,820 Either the property that was transferred was subject to liabilities or Seggerman Farms assumed the liabilities from Ronald Seggerman in the amount of $402,903 as follows: Amount of Creditor Liability Minonk State Bank $259,370 Ford Motor Co. 11,533 Federal Land Bank 132,000 Total 402,903 The amount of the liabilities that were transferred to Seggerman Farms by Ronald Seggerman exceeded the adjusted basis of the assets that he transferred to Seggerman Farms by $336,702. The portion of this gain that was attributable to long-term capital gain was $206,751, and the portion attributable to ordinary gain was $129,951. Craig Seggerman transferred the following assets to Seggerman Farms:Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 Next
Last modified: May 25, 2011