Question
Jenkins transferred land worth $50,000 to his controlled corporation for stock of the corporation worth $20,000 and cash of $20,000. The basis of the property
Jenkins transferred land worth $50,000 to his controlled corporation for stock of the corporation worth $20,000 and cash of $20,000. The basis of the property to him was $15,000 and was subject to a $10,000 mortgage (non-bona fide business purpose), which the corporation assumed. Jenkins must report a gain of how much?
A. $10,000
B. $20,000
C. $30,000
D. $35,000
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South Western Federal Taxation 2015 Essentials Of Taxation Individuals And Business Entities
Authors: James Smith, William Raabe, David Maloney, James Young
18th Edition
9781285438290, 1285439740, 1285438299, 978-1285439747
