Union Corporation sells a truck for $18,000 to Jane, who owns 70% of its stock. The truck

Question:

Union sells a truck for $18,000 to Jane, who owns 70% of its stock. The truck has a $24,000 adjusted basis on the sale date. Jane sells the truck to an unrelated party, Mike, for $28,000 two years later after claiming $5,000 in depreciation.
a. What is Union’s realized and recognized gain or loss on selling the truck?
b. What is Jane’s realized and recognized gain or loss on selling the truck to Mike?
c. How would your answers to Part b change if Jane instead sold the truck for $10,000?
Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...