Exercise 4-20 (Algorithmic) (LO. 1, 2) Grady exchanges property with a basis of $28,833 and fair market value of $34,600 for 60% of the stock of Eadie Corporation. Pedro acquired the other 40% of the stock five years ago. Calculate Grady's current income, gain, or loss and the basis he takes in his shares of Eadie stock as a result of this transaction. Because this transaction does not meet 6,700 X and $ Feedback Check My Work the control of the corporation requirement, Grady has a gain 28,833 X basis in his shares of stock. of The three requirements for nonrecognition of gain or loss under 351 are that (1) property is transferred (2) in exchange for stock and (3) the property transferors are in control of the corporation after the exchange.

Exercise 420 (Algorithmic) (Lo. 1, 2) Grady wxchanges property with a basis of $28,833 and fair market value of $34,600 for 60% of the stock of Eacie Corporation. Pedro acquired the other 40% of the stock five years ago. Calculate Grady's current income, gain, or loss and the basis he takes in his shares of Eadie stock as a result of this transaction. Because this transaction the control of the corporation requirement, Grady has of x and s X basis in his shares of stock. toneck My whet The three requirements for nonrecognition of gain or loss under 5351 are that (1) proporty is transferred (2) in exchange for stock and (3) the property transferors are in controf of the corporation after the exchange