Sarah, the sole owner of Tech Solutions Inc., transfers software rights to the corporation in exchange for 500 shares of stock worth $90,000 and $15,000 in cash. The software rights have an adjusted basis of $45,000. What is Sarah's recognized gain on the transfer?

CONCEPTS IN FED.TAX.,2020-W/ACCESS
20th Edition
ISBN:9780357110362
Author:Murphy
Publisher:Murphy
Chapter12: Nonrecognition Transactions
Section: Chapter Questions
Problem 24P
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Financial Accounting

Sarah, the sole owner of Tech Solutions Inc., transfers
software rights to the corporation in exchange for 500 shares
of stock worth $90,000 and $15,000 in cash. The software
rights have an adjusted basis of $45,000. What is Sarah's
recognized gain on the transfer?
Transcribed Image Text:Sarah, the sole owner of Tech Solutions Inc., transfers software rights to the corporation in exchange for 500 shares of stock worth $90,000 and $15,000 in cash. The software rights have an adjusted basis of $45,000. What is Sarah's recognized gain on the transfer?
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