Question
Assume Russ sole asset is land with a fair market value of $300 (before considering any mortgage) and an adjusted basis of $300, but the
Assume Russ sole asset is land with a fair market value of $300 (before considering any mortgage) and an adjusted basis of $300, but the land is subject to a mortgage of $75. Russ NOL is $50. Rus liquidates and Ivan takes the land subject to the mortgage, Ivans basis in the shares was $100.
a) What is Ivans gain or loss?
b) What is Ivans adjusted basis in the land?
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Principles Of Auditing
Authors: O. Ray Whittington, Kurt Pany, Walter B. Meigs
12th Edition
0256167796, 978-0256167795
