22. Ann transferred land worth $200,000, with a tax basis of $40,000, to Brown Corporation, an existing entity, for 100 shares of its stock, her stock being worth $200,000. Brown Corporation has two other original shareholders, Bill and Bob, each of whom holds 100 shares. Ann would be a new shareholder owning one-third of the corporation. With respect to the transfer: -8- a. Ann has no recognized gain. b. Brown Corporation has a basis of $160,000 in the land. c. Ann has a basis of $200,000 in her 100 shares in Brown Corporation. d. Ann has a basis of $40,000 in her 100 shares in Brown Corporation. e. None of the above.

22. Ann transferred land worth $200,000, with a tax basis of $40,000, to Brown Corporation, an existing entity, for 100 shares of its stock, her stock being worth $200,000. Brown Corporation has two other original shareholders, Bill and Bob, each of whom holds 100 shares. Ann would be a new shareholder owning one-third of the corporation. With respect to the transfer: 8. a. Ann has no recognized gain. b. Brown Corporation has a basis of $160,000 in the land. c. Ann has a basis of $200,000 in her 100 shares in Brown Corporation. d. Ann has a basis of $40,000 in her 100 shares in Brown Corporation. c. None of the above