Ann transfers land (market value $170,000, basis $ 60,000) to Acme Corporation in exchange for 100% of Acme's stock and a $20,000 note receivable. The corporation also assumes a mortgage of $90,000 on the land transferred. What is the total amount of gain recognized by Ann?
Ann transfers land (market value $170,000, basis $ 60,000) to Acme Corporation in exchange for 100% of Acme's stock and a $20,000 note receivable. The corporation also assumes a mortgage of $90,000 on the land transferred. What is the total amount of gain recognized by Ann?
Chapter12: Nonrecognition Transactions
Section: Chapter Questions
Problem 21P
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Transcribed Image Text:Ann transfers land (market value $170,000, basis $
60,000) to Acme Corporation in exchange for 100% of
Acme's stock and a $20,000 note receivable. The
corporation also assumes a mortgage of $90,000 on
the land transferred. What is the total amount of gain
recognized by Ann?
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