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1. Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in
1. Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows: Property Adjusted Basis Fair Market Value Percentage of The Worthington Corp. Stock Acquired Gearty Building $80,000 $164,000 60% Olinto Land 10,000 96,000 40% The building was subject to a $20,000 mortgage that was assumed by The Worthington Corp. What was The Worthington Corp.'s basis in the building? a. $60,000 b. $80,000 c. $144,000 d. $104,000
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