Carla transfers land with an FMV of $100,000, basis of $20,000, to a corporation in exchange for 50% of the corporation's stock. The land is subject to a $50,000 liability, which the corporation assumes. What amount of gain must Carla recognize as a result of this transaction? a. $0 b. $30,000 c. $50,000 d. $80,000
Carla transfers land with an FMV of $100,000, basis of $20,000, to a corporation in exchange for 50% of the corporation's stock. The land is subject to a $50,000 liability, which the corporation assumes. What amount of gain must Carla recognize as a result of this transaction? a. $0 b. $30,000 c. $50,000 d. $80,000
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 15MCQ
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Transcribed Image Text:Carla transfers land with an FMV of $100,000, basis of $20,000, to a
corporation in exchange for 50% of the corporation's stock. The land is
subject to a $50,000 liability, which the corporation assumes. What
amount of gain must Carla recognize as a result of this transaction?
a. $0
b. $30,000
c. $50,000
d. $80,000
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