Question
Marty Samour incorporated his cash basis consulting business. He transfers equipment that has a zero basis and a fair market value of $2000. He also
Marty Samour incorporated his cash basis consulting business. He transfers equipment that has a zero basis and a fair market value of $2000. He also transfers accounts receivable of $12,000 and accounts payable of $15,000. What is the amount of gain or loss to be recognized by Marty?
A.$3,000 loss.
B. $2,000 gain.
C. $3,000 gain.
D. No gain or loss.
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Accounting Volume 2
Authors: James Reeve, Jonathan Duchac, Sheila Elworthy, Carl S. Warren
2nd Canadian edition
176501452, 978-0176501457, 978-0176509743
