Diego transfers real estate with an adjusted basis of $415,200 and fair market value of $581,280 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $494,088. Determine Diego's recognized gain on the transfer and the basis for his stock. If amount is zero, enter "0". Diego has a recognized gain on the transfer of $ and a basis of $ for his stock.
Diego transfers real estate with an adjusted basis of $415,200 and fair market value of $581,280 to a newly formed corporation in exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $494,088. Determine Diego's recognized gain on the transfer and the basis for his stock. If amount is zero, enter "0". Diego has a recognized gain on the transfer of $ and a basis of $ for his stock.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Transcribed Image Text:Exercise 4-22 (Algorithmic) (LO. 1, 2, 3)
Diego transfers real estate with an adjusted basis of $415,200 and fair market value of
$581,280 to a newly formed corporation in exchange for 100% of the stock. The
corporation assumes the liability on the transferred real estate in the amount of
$494,088.
Determine Diego's recognized gain on the transfer and the basis for his stock.
If amount is zero, enter "0".
Diego has a recognized gain on the transfer of $
and a basis of $
for his stock.
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