Betty forms a corporation by transferring land worth $100,000 for 100% of the stock of the corporation. Betty paid $30,000 for the land. a. How much gain or loss do Betty and the corporation recognize on the transfer? b. What is Betty's basis in her shares of stock in the corporation? c. What is the corporation's basis in the land?
Betty forms a corporation by transferring land worth $100,000 for 100% of the stock of the corporation. Betty paid $30,000 for the land. a. How much gain or loss do Betty and the corporation recognize on the transfer? b. What is Betty's basis in her shares of stock in the corporation? c. What is the corporation's basis in the land?
Chapter18: Corporations: Organization And Capital Structure
Section: Chapter Questions
Problem 31P
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