Karen, in forming a new corporation, transfers land to the corporation in exchange for 100 percent of
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Question:
Karen, in forming a new corporation, transfers land to the corporation in exchange for 100 percent of the stock of the corporation. Karen's basis in the land is $761,600, and the corporation assumes a liability on the property in the amount of $837,760. The stock received by Karen has a fair market value of $1,523,200.
If an amount is zero, enter "0".
a.What is the amount of gain or loss that must be recognized by Karen on this transfer?
$
b.What is the amount of Karen's basis in the corporation's stock?
$
c.What is the amount of the corporation's basis in the land?
$
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