Susan transfers land to Remote corporation for 100% of its stock. Susan's basis in the land was
Question:
Susan transfers land to Remote corporation for 100% of its stock. Susan's basis in the land was $25,000 at the time of the transfer. Remote corporation also assumes Remote's mortgage of $50,000.
a. If the fair value of the land is $100,000, then Susan must recognize a $ gain. Susan's basis in the Remote corporation stock will be $blank. Remote's corporation's basis in the land will be $blank.
b. If the fair value of the land is $40,000, then Susan must recognize a $blank gain. Susan's basis in the Remote corporation stock will be $blank. Remote corporation's basis in the land will be $blank.
c. If the fair value of the land is $75,000 and Susan receives $10,000 of boot, then Susan recognizes a $blank gain. Susan's basis in the stock received is $blank and Susan's basis in the boot received is $blank. Remote corporation's basis in the land will be $blank.
Federal Taxation 2017 Comprehensive
ISBN: 9780134421438
30th edition
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson