Identify the amount and character of Person G’s gain or loss.

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Gaston Corporation distributes § 1245 property as a dividend to its shareholders. The property's fair market value is $813,600, and the adjusted basis is $772,920. In addition, the amount of the recapture potential is $77,292. What is the amount and character of Gaston's gain or loss? As result of the distribution, Gaston recognizes of

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Chapter 17, Problem 30CE

To determine

Identify the amount and character of Person G’s gain or loss.

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Gaston Corporation distributes § 1245 property as a dividend to its shareholders. The property's fair market value is $813,600, and the adjusted basis is $772,920. In addition, the amount of the recapture potential is $77,292. What is the amount and character of Gaston's gain or loss? As result of the distribution, Gaston recognizes of

8. LO.1 On January 7, 2022, Martin Corporation acquires two properties from a shareholder solely in exchange for stock in a transaction that qualifies under § 351. The share- holder's basis, the fair market value, and the built-in gain (loss) of each property are: Shareholder's Basis Fair Market Value Property 1 Property 2 $300,000 525,000 Net built-in loss $375,000 400,000 Built-In Gain (Loss) $ 75,000 (125,000) ($ 50,000) Martin adopts a plan of liquidation later in the year and distributes Property 2 to a 30% shareholder when the property is worth $350,000. a. Compute Martin's basis in Property 1 and in Property 2 as of January 7, 2022. b. Compute Martin's realized and recognized loss on the liquidating distribution of Property 2.

5. (a) A transfers a contract to perform services to Newco in exchange for 50% of Newco's stock B transfers a tract of land with a basis of 50 and FMV of 100 in exchange for 50% of Newco's stock. What are the tax consequences to all of the parties?