In 2021, James contributes a building to Keen Corporation in exchange for common stock. James's basis in the building is $400,000 and the FMV is $600,000. The common stock James received is worth $700,000. James owns 60% of the voting stock and 90% of the non-voting stock after the exchange. What is James's taxable gain in 2021?

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A:

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A:

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Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.