Question: 1 . Ann exchanges land having a $ 2 2 , 0 0 0 adjusted basis and a FMV of $ 3 0 , 0

1. Ann exchanges land having a $22,000 adjusted basis and a FMV of $30,000 for 60% of newly created Buckeye Corporations single class of stock. Betty exchanges $20,000 cash for the remaining 40% of Buckeye stock. What is each shareholders realized gain/loss, recognized gain/loss, and basis in the stock received? What is Buckeyes recognized gain/loss and what is its basis in the land?

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