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Jimmy McGill and Kim Wexler form a corporation. Jimmy transfers $200,000 cash and receives 50% stock. Kim transfers inventory and a building in return for
Jimmy McGill and Kim Wexler form a corporation. Jimmy transfers $200,000 cash and receives 50% stock. Kim transfers inventory and a building in return for the remaining 50% stock. The property transferred to the corporation had the following fair market value and adjusted basis. FMV Adjusted Basis Inventory 75,000 90,000 Building 125,000 130,000 Total 200,000 220,000
How much gain or loss does Kim recognize?
What is Kims basis in the stock?
What is the corporations basis in the inventory and building received from Kim?
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