Stock of cardinal corporation

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Kim owns 100% of the stock of Cardinal Corporation. In the current year Kim transfers an installment obligation, tax basis of $30,000 and fair market value of $200,000, for additional stock in Cardinal worth $200,000.

a. Kim recognizes no taxable gain on the transfer.

b. Kim has a taxable gain of $170,000.

c. Kim has a taxable gain of $180,000.

d. Kim has a basis of $200,000 in the additional stock she received in Cardinal Corporation.

e. None of the above.

Reference no: EM13122349

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