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Jill transferred land worth $200,000, with a tax basis of $40,000, to Blue Corporation, an existing entity, for 100 shares of its stock. Blue Corporation
Jill transferred land worth $200,000, with a tax basis of $40,000, to Blue Corporation, an existing entity, for 100 shares of its stock. Blue Corporation has two other shareholders, Tom and Joe, each of whom holds 100 shares. With respect to the transfer: Select one:
a. Jill has a basis of $ 40,000 in her 100 shares in Blue Corporation.
b. Jill has a basis of $200,000 in her 100 shares in Blue Corporation.
c. Blue Corporation has a basis of $160,000 in the land.
d. Jill have no recognized gain.
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