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.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
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Chapter1: Financial Statements And Business Decisions
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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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