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
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
Chapter11: The Corporate Income Tax
Section: Chapter Questions
Problem 15MCQ
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Question
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
- $25,000
- $100,000
- 125,000
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