Business Tax

13. LO 11.7 Karen, in forming a new corporation, transfers land to the corporation in exchange for 100 percent of the stock of the corporation. Karen's basis in the land is $275,000, and the corporation assumes a liability on the property in the amount of $300,000. The stock received by Karen has a fair market value of $550,000. 1. What is the amount of gain or loss that must be recognized by Karen on this transfer? 2. What is the amount of Karen's basis in the corporation's stock? $ 3. What is the amount of the corporation's basis in the land? $