Mark and Paula form Amber Corporation. Mark transfers property (basis of $150,000 and fair market value of $110,000) while Paula transfers land (basis of $12,000 and fair market value of $70,000) and $20,000 of cash. Each receives 50% of Amber Corporation's stock (total value of $180,000).  

What are the tax consequences for each person and the corporation?

Answer rating: 100% (QA)

For Mark He has a recognized loss of 40000 150000 110000 Since its a transfer to a corpor... View the full answer