16-

In a transaction qualifying under 351, Karen transfers the following assets to Kramer Corporation in exchange for all of its stock: equipment (basis $200,000; fair market value $150,000) and land with (basis $75,000; fair market value $100,000). No special elections are made. What is Kramer Corporations basis in the equipment?

Answer:................

17-

Several years ago, Minjun, who is single, acquired 1244 stock in Blue Corporation at a cost of $89,600. He sells the Blue stock for $8,960 in the current year.

Determine the amount and nature of Minjun's gain or loss recognized this year.

Minjun's sale of Blue Corporation stock produces a total loss of $........................... of which $................................is treated as a capital loss.