Phillip incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for $100$ percent of the corporation's stock. The property transferred to the corporation had the following fair market values and tax$-$adjusted bases.

FMV Adjusted tax basis

Inventory $ $155,250$ $ $67,500$

Building $150,750291,750$

Land $190,250150,750$

Total $ $496,250$ $ $510,000$

The fair market value of the corporation's stock received in the exchange was $$496,250.$ The transaction met the requirements to be tax$-$deferred under $351.$

What amount of net gain or loss does Phillip realize on the transfer of the property to his corporation?

What amount of gain or loss does Phillip recognize on the transfer of the property to his corporation?

What is the corporation's adjusted tax basis in each of the assets received in the exchange?Question $41-19-$ Exam #$2($Ch $$

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$19-$ Exam #$2($Ch$.16,18,19)$ i

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$1$ Phillip incorporated his sole proprietorship by transferring inventory, a building, and land to the corporation in return for $100$ percent of the corporation's stock. The property transferred to the corporation had the following fair market values and taxadjusted bases.

$\backslash$table$[[,$FMV$,$Adjusted tax basis$],[$Inventory$,$$$155,250,$$$67,500$