23

Sue and Andrew form SA general partnership. Each person receives an equal interest in the newly created partnership. Sue contributes $23,000 of cash and land with an FMV of $68,000. Her basis in the land is $33,000. Andrew contributes equipment with an FMV of $25,000 and a building with an FMV of $46,000. His basis in the equipment is $21,000, and his basis in, the building is $33,000. How much gain must the SA general partnership recognize on the transfer of these assets from Sue and Andrew? Multiple Choice $4,000 $48,000 $0 $52,000 Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $607,500 plus $607,500 in cash. Simone's tax basis in the Purple stock was $238,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives? Multiple Choice $607,500 gain recognized and a basis in Plum stock of $238,000 $607,500 gain recognized and a basis in Plum stock of $607,500 $977,000 gain recognized and a basis in Plum stock of $607,500 $977,000 gain recognized and a basis in Plum stock of $1,215,000