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Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory with a basis of $11,200 and fair market value
Jocelyn contributes land with a basis of $36,500 and fair market value of $54,750 and inventory with a basis of $11,200 and fair market value of $16,800 in exchange for 100% of Zion Corporation stock. The land is subject to a $9,125 mortgage.
Determine Jocelyn's recognized gain or loss and the basis in the Zion stock received.
The exchange (Is or Is not) tax-free under 351 because the release of a liability (is or is not) treated as boot under 357(a). As a result, Jocelyn has income of $_____ and a basis $ ______in her stock.
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