Question
A transfers $50,000 cash in exchange for 50 shares of NewCo stock.B transfers investment land with a basis of $10,000 and a FMV of $50,000
A transfers $50,000 cash in exchange for 50 shares of NewCo stock.B transfers investment land with a basis of $10,000 and a FMV of $50,000 in exchange for 40 shares of NewCo stock and $10,000 cash.
What is A and B's individual realized and recognized gain and their individual basis in NewCo Stock?
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Federal Taxation 2015 Comprehensive
Authors: Thomas R. Pope, Timothy J. Rupert, Kenneth E. Anderson
28th Edition
978-0133807783, 133807789, 133822133, 978-0133822137
