Question 3: Mary transferred land with an adjusted basis to her of $ 21,000 and a fair market value of $ 57,000 to Wine Corporation in exchange for 100% of Wine Corporation's only class of stock. The land was subject to a liability of $ 28,000, which Wine assumed for legitimate business purposes. The fair market value of Wine's stock at the time of the transfer was. $31,000. What is the amount of Mary's recognized gain? a) $ 29,000 b) $ 7,000 c) $ 26,000 d) $ 10,000 1 of 2
Question 3: Mary transferred land with an adjusted basis to her of $ 21,000 and a fair market value of $ 57,000 to Wine Corporation in exchange for 100% of Wine Corporation's only class of stock. The land was subject to a liability of $ 28,000, which Wine assumed for legitimate business purposes. The fair market value of Wine's stock at the time of the transfer was. $31,000. What is the amount of Mary's recognized gain? a) $ 29,000 b) $ 7,000 c) $ 26,000 d) $ 10,000 1 of 2
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 16MCQ
Related questions
Question
Transcribed Image Text:Question 3: Mary transferred land with an adjusted basis to her of $ 21,000 and a fair market
value of $ 57,000 to Wine Corporation in exchange for 100% of Wine Corporation's only class
of stock. The land was subject to a liability of $ 28,000, which Wine assumed for legitimate
business purposes. The fair market value of Wine's stock at the time of the transfer was.
$31,000. What is the amount of Mary's recognized gain?
a) $ 29,000
b) $ 7,000
c) $ 26,000
d) $ 10,000
1 of 2
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you