1. Tara transfers land with a $600,000 adjusted basis and a $700,000 FMV to a corporation in a Sec. 351 transfer. Immediately after the transfer, Tara owns 100% of the corporation's stock with a FMV of $660,000. In addition, Tara's $40,000 principal balance on her student loan is legally assumed by the corporation as part of the overall transfer. No other property is transferred. Tara's recognized gain on the transfer is Group of answer choices $60,000. $100,000. $0. $40,000.
1. Tara transfers land with a $600,000 adjusted basis and a $700,000 FMV to a corporation in a Sec. 351 transfer. Immediately after the transfer, Tara owns 100% of the corporation's stock with a FMV of $660,000. In addition, Tara's $40,000 principal balance on her student loan is legally assumed by the corporation as part of the overall transfer. No other property is transferred. Tara's recognized gain on the transfer is Group of answer choices $60,000. $100,000. $0. $40,000.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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1.
Tara transfers land with a $600,000 adjusted basis and a $700,000 FMV to a corporation in a Sec. 351 transfer. Immediately after the transfer, Tara owns 100% of the corporation's stock with a FMV of $660,000. In addition, Tara's $40,000 principal balance on her student loan is legally assumed by the corporation as part of the overall transfer. No other property is transferred. Tara's recognized gain on the transfer is
Group of answer choices
$60,000.
$100,000.
$0.
$40,000.
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