Answer: $0; $40,000
Step-by-step explanation:
The accounts payable is the money that a business or company owes its suppliers. It should be noted that on the balance sheet of a company, the accounts payable is a liability.
But under Sec 357(c), accounts payable are regarded as liabilities as the payable payment result in a deduction.
From the information given in the question, the stock basis will be equal to the addition of the cash basis and the equipment basis minus the liability transferred. This will be:
= $10,000 + 80,000 - $50,000
= $40,000