Question
Julia transferred a building with a basis of $175,000 and a FMV of $250,000 to an S corporation in exchange for all of its stock.
Julia transferred a building with a basis of $175,000 and a FMV of $250,000 to an S corporation in exchange for all of its stock. The FMV of the stock was $80,000. The building had a mortgage attached of $190,000, which was assumed by the corporation. What is Julias realized and recognized gain on the exchange?
| Realized Gain | Recognized Gain |
| Realized Gain $20,000 | Recognized Gain $20,000 |
| Realized Gain $75,000 | Recognized Gain $0 |
| Realized Gain $95,000 | Recognized Gain $15,000 |
| Realized Gain $60,000 | Recognized Gain $60,000 |
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Accounting Information For Decisions
Authors: Robert Ingram, Thomas L. Albright, Bruce A. Baldwin, John Hill
1st Edition
0538815388, 978-0538815383
