Question
David organizes White Corporation with a transfer of land (basis $200,000, FMV $600,000) that is subject to a mortgage of $150,000. A month before incorporation,
David organizes White Corporation with a transfer of land (basis $200,000, FMV $600,000) that is subject to a mortgage of $150,000. A month before incorporation, David bored $100,000 for personal purposes and gave the bank a lien on the land. White Corporation issues stock worth $350,000 to David and assumes the mortgage of $150,000 and the personal loan od $100,000. What are the tax consequences?
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Auditing A Risk Based Approach
Authors: Karla M Johnstone-Zehms, Audrey A. Gramling, Larry E. Rittenberg
12th Edition
035772187X, 978-0357721872
