Solution-What amount of gain did Carr recognize from this

What amount of gain did Carr recognize from this transaction

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Reference no: EM132673555

Problem - Adams, Beck, and Carr organized Flexo Corp. with authorized voting common stock of $100,000. Adams received 10% of the capital stock in payment for the organizational services that he rendered for the benefit of the newly formed corporation. Adams did not contribute property to Flexo and was under no obligation to be paid by Beck or Carr. Beck and Carr transferred property in exchange for stock as follows.

	Adjusted Basis	Adjusted Basis	Percentage of Flexo Stock Acquired
Beck	$ 5,000	$ 20,000	20%
Carr	60,000	70,000	70%

Required - What amount of gain did Carr recognize from this transaction?

a. $40,000

b. $15,000

c. $10,000

d. $0

Reference no: EM132673555

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What amount of gain did Carr recognize from this transaction

Reference no: EM132673555

Reference no: EM132673555

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