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In 2005, Ruth transfers the following property for an 80% interest in RGB corporation (1,000 shares): Land with a FMV of $100,000 and an adjusted
In 2005, Ruth transfers the following property for an 80% interest in RGB corporation (1,000 shares):
- Land with a FMV of $100,000 and an adjusted basis of $20,000. The land had a $40,000 mortgage which was assumed by the corporation.
- Does Ruth recognize gain, loss, or income from the transfer of the assets to RGB Corporation?
- What is the basis of Ruths stock in RBG Corporation?
c. What basis does RBG Corp have in the land?
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