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Creditor A (Not shareholder) loaned $100,000 to Corp. X Corp. is worthless and insolvent, A contributes her debt for 10% of Corporation X stock Any

Creditor A (Not shareholder) loaned $100,000 to Corp. X Corp. is worthless and insolvent, A contributes her debt for 10% of Corporation X stock

Any gain recognized by A (Yes/No) _____________

Any taxable income recognized by Corp. X (Yes/No) _____________

What Code Section for Part b. above _______________

In the question above, assume A is a shareholder and Corp. X is solvent. A contributes the loan to capital and receives stock in Corp. X worth less than the loan

Any gain recognized by A (Yes/No) _____________

Any taxable income recognized by Corp. X (Yes/No) _____________

What Code Section for Part b. above _______________

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