Solution-What amount of gain or loss does Zhang realize on

What amount of gain or loss does Zhang realize on transfer

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Question - Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted bases:

	FMV	Adj. Basis
Inventory	68000	34000
Building	510000	3440000
Land	782000	1020000
Total	1360000	1394000

The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $1,260,000. The transaction met the requirements to be tax-deferred under §351.

Required -

(a) What amount of gain or loss does Zhang realize on the transfer of the property to her corporation?

(B) What amount of gain or loss does Zhang recognize on the transfer of the property to her corporation?

Reference no: EM132834227

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What amount of gain or loss does Zhang realize on transfer

Reference no: EM132834227

Reference no: EM132834227

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