Question: Return to original facts (same basis). Todds property is valued at $2,300,000 but is contributed subject to a $300,000 liability. (This means that Todd still

Return to original facts (same basis). Todds property is valued at $2,300,000 but is contributed subject to a $300,000 liability. (This means that Todd still contributes equity of $2,000,000 so it is still a 50/50 split of ownership.

Complete the following

Mary Todd

Realized gain ________ ________

Recognized gain ________ _________

Basis of stock _________ _________

MT basis in contributed asset __________ _________

VARIATION 2: Same as Variation 1 (same basis) except Todds property is valued at $3,700,000 and is contributed subject to a liability of $1,700,000. (Again Todd contributes $2,000,000 of equity)

Complete the following

Mary Todd

Realized gain ________ ________

Recognized gain ________ _________

Basis of stock _________ _________

MT basis in contributed asset __________ _________

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