existing entity, for 100 shares of its stock. Brown Corporation has two other shareholders, Bill and Bob, each of whom holds 100 shares. With respect to the transfer: 6. Ann transferred land worth $200,000, with a tax basis of $40,000, to Brown Corporation, an a) Ann has no recognized gain. b) Brown Corporation has a basis of $160,000 in the land. c) Ann has a basis of $200,000 in her 100 shares in Brown Corporation. d) Ann has a basis of $40,000 in her 100 shares in Brown Corporation. 7. Rachel is the sole shareholder of an LLC, and Jordan is the sole shareholder of a C corporation. Both businesses were started in the current year, and each business has a long- term capital gain of $10,000 for the year. Neither business made any distributions during the year. Rachel filed Form 8832 and elected sole proprietorship tax treatment for the LLC. With respect to this information, which of the following statements is correct? o) The C Corporation received a preferential tax rate on the long-term capital gain of $10,000 b) The LLC must pay corporate tax on taxable income of $10,000. c) Jordan must report $10,000 of long-term capital gain on his tax return. d) Rachel must report $10,000 of long-term capital gain on her tax return