Kellye and Becky formed Whoop! Shotz Corporation by contributing property with a fair market value of $50,000
Question:
Kellye and Becky formed Whoop! Shotz Corporation by contributing property with a fair market value of $50,000 and $70,000 cash, respectively, each for a 50% ownership in the newly formed company. What is Kellye’s taxable gain in this situation if the adjusted basis in the property is $25,000 and the company is valued at $120,000?
a. $0
b. $10,000
c. $25,000
d. $35,000
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Related Book For
South Western Federal Taxation 2018 Corporations Partnerships Estates And Trusts
ISBN: 1389
41st Edition
Authors: William H. Hoffman, William A. Raabe, James C. Young, Annette Nellen, David M. Maloney
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