Breslin, Inc. made a capital contribution of investment property to its 100 percent-owned subsidiary, Crisler Company. The

Question:

Breslin, Inc. made a capital contribution of investment property to its 100 percent-owned subsidiary, Crisler Company. The investment property had a fair market value of $3,000,000 and a tax basis to Breslin of $2,225,000.
a. What are the tax consequences to Breslin, Inc. on the contribution of the investment property to Crisler Company?
b. What is the tax basis of the investment property to Crisler Company after the contribution to capital?