Diane transfers three assets to Kristin Co. in return for 100% of its stock, valued at the FMV of the assets she transfers. Assume the exchange qualifies as a Code Sec. 351 transfer. Information on the three assets follows:   

                                 

                                               

Assuming no special election is made, what is Diane's recognized gain or loss on the transfer? (3 points)                                 

What is Diane's basis in the stock?                                   

What is Kristin Co.'s basis in the land?                              

What is Kristin Co.'s basis in the building?                                

What is Kristin Co.'s basis in the equipment?                             

Describe the election that Diane/Kristin can make in regards to the transfer and how it would change the results.            

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Asset EMV Adjusted Basis Land 600,000.00 510,000.00 Building 250.000.00 310,000.00 Equipment 150,000.00 190,000.00 Asset EMV Adjusted Basis Land 600,000.00 510,000.00 Building 250.000.00 310,000.00 Equipment 150,000.00 190,000.00

Answer rating: 100% (QA)

Dianes realized loss on the exchange is 10000 1000000 1010000 Diane does not ... View the full answer