19. Shaquille transfers two assets to a newly-created corporation. The first asset has an adjusted basis of $40,000 and an FMV of $50,000. The second asset has an adjusted basis of $35,000 and an FMV of $25,000. Shaquille receives stock with an FMV of $66,000 and $9,000 cash. Shaquille must recognize a gain of A) $4,000. B) $5,000. C) $6,000. D) $7,009.
19. Shaquille transfers two assets to a newly-created corporation. The first asset has an adjusted basis of $40,000 and an FMV of $50,000. The second asset has an adjusted basis of $35,000 and an FMV of $25,000. Shaquille receives stock with an FMV of $66,000 and $9,000 cash. Shaquille must recognize a gain of A) $4,000. B) $5,000. C) $6,000. D) $7,009.
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 15MCQ
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Transcribed Image Text:19. Shaquille transfers two assets to a newly-created corporation. The first asset has an adjusted basis of
$40,000 and an FMV of $50,000. The second asset has an adjusted basis of $35,000 and an FMV of
S25,000. Shaquille receives stock with an FMV of $66,000 and $9,000 cash. Shaquille must recognize a
gain of
A) $4,000.
B) $5,000.
C) $6,000.
D) $7,000.
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