Question
A shareholder transfers inventory (which cost him $40,000) in exchange for 80% of a corporations common stock shares (worth $45,000) and $5,000 cash. How much
A shareholder transfers inventory (which cost him $40,000) in exchange for 80% of a corporations common stock shares (worth $45,000) and $5,000 cash. How much gain does the shareholder recognize on the transaction?
A. $5,000
B. $10,000
C. No Gain is Recognized
D. ($5,000
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Financial Accounting Information For Decisions
Authors: John J Wild
3rd Edition
0072974729, 978-0072974720
