8. Nail Bite Co. acquired land with fair value of $4,000,000 in exchange for Nail Bite's10,000 shares with par value of $40 per share and quoted price of $360 per share.How much gain (loss) should Nail Bite Co. recognize on the exchange?a. 3,200,000b. 400,000c. (400,000)d. 0

Gain on the exchange can be calculated by deducting the market value of share from the fair value of…

8. Nail Bite Co. acquired land with fair value of $4,000,000 in exchange for Nail Bite's 10,000 shares with par value of P40 per share and quoted price of P360 per share. How much gain (loss) should Nail Bite Co. recognize on the exchange? a. 3,200,000 c. (400,000) d. 0 b. 400,000

8. Nail Bite Co. acquired land with fair value of $4,000,000 in exchange for Nail Bite's 10,000 shares with par value of P40 per share and quoted price of P360 per share. How much gain (loss) should Nail Bite Co. recognize on the exchange? a. 3,200,000 c. (400,000) d. 0 b. 400,000

SWFT Essntl Tax Individ/Bus Entities 2020

23rd Edition

ISBN:9780357391266

Author:Nellen

Publisher:Nellen

Chapter12: Corporations: Organization, Capital Structure, And Operating Rules

Section: Chapter Questions

Problem 2BCRQ

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Question

8. Nail Bite Co. acquired land with fair value of $4,000,000 in exchange for Nail Bite's
10,000 shares with par value of $40 per share and quoted price of $360 per share.
How much gain (loss) should Nail Bite Co. recognize on the exchange?
a. 3,200,000
b. 400,000
c. (400,000)
d. 0

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