Carla Corporation transfers land with an FMV of $120,000, a basis of $40,000, to a corporation in exchange for 60% of the corporation's stock. The land is subject to a $60,000 liability, which the corporation assumes. What amount of gain must Carla recognize as a result of this transaction?
Carla Corporation transfers land with an FMV of $120,000, a basis of $40,000, to a corporation in exchange for 60% of the corporation's stock. The land is subject to a $60,000 liability, which the corporation assumes. What amount of gain must Carla recognize as a result of this transaction?
Chapter9: Acquisitions Of Property
Section: Chapter Questions
Problem 44P
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Transcribed Image Text:Carla Corporation transfers land with an
FMV of $120,000, a basis of $40,000, to a
corporation in exchange for 60% of the
corporation's stock. The land is subject
to a $60,000 liability, which the
corporation assumes. What amount of
gain must Carla recognize as a result of
this transaction?
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