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Assume the following facts regarding Bilbo: Owns 6 , 0 0 0 shares in Corporation Z . Owns a ski resort with FMV $ 3
Assume the following facts regarding Bilbo:
Owns shares in Corporation Z
Owns a ski resort with FMV $
Has $ basis in the ski resort.
Has a $ mortgage on the ski resort that was taken out years ago for business purposes.
Assume the following facts regarding Corporation Z:
Has shares outstanding before the transaction.
Has $ cash in the bank.
Assume the following are exchanged between Bilbo and Corporation Z:
Bilbo contributes her ski resort to Corporation Z
Corporation Z issues shares to Bilbo
Corporation Z agrees to assume the $ loan.
What is Bilbos realized gain? A
What is Bilbos recognized gain? B
What is Bilbos basis in her new shares of stock? C
What is Corporation Zs realized gain? D
What is Corporation Zs recognized gain? E
What is Corporation Zs basis in the ski resort? F
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