1

Pick the best answer based on the following information: Harold transfers the following to a newly formed corporation: Land (basis of $50,000 and FMV of $100,000 ) Building (basis of $50,000 and FMV of $400,000 ) Accounts payable of $10,000 (for personal vacation) Notes Payable 1 for building improvements of $185,000 a. $357 (b) and $357 (c) problem so 357 (b) controls b. 357 (b) and $357 (c) problem so $357 (c) controls c. $357(b) problem d. $357(c) problem e. No$357 (b) or $357 (c) problems What is the stock basis for Harold in the following: Harold transfers the following to a newlyformed corporation: Land (basis of $50,000 and FMV of $100,000 ) Building (basis of $50,000 and FMV of $400,000 ) Accounts payable of $10,000 (for business supplies) Notes Payable 1 for building improvements of $185,000 a. $5,000 (the gain recognized less original basis) b. $100,000($50+$50) c. ($95,000)($100,000 basis less $195,000 gain ) d. $95,000 the gain recognized e. Zero (original basis plus gain recognized less liabilities transferred)