Sarah transfer land with a fair market value of $25,000, to a corporation in exchange for 100 percent of the corporation’s stock. What amount of gain must Sarah recognize as a result of this transaction?   $0

Income Tax Fundamentals 2020
38th Edition
ISBN:9780357391129
Author:WHITTENBURG
Publisher:WHITTENBURG
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 15MCQ
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Sarah transfer land with a fair market value of $25,000, to a corporation in exchange for 100 percent of the corporation’s stock. What amount of gain must Sarah recognize as a result of this transaction?

 

  1. $0
  2. $25,000
  3. $100,000
  4. 125,000
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