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Problem 1 1 - 2 0 Corporate Formation ( LO 1 1 . 7 ) Karen, in forming a new corporation, transfers land to the
Problem Corporate Formation LO Karen, in forming a new corporation, transfers land to the corporation in exchange for percent of the stock of the corporation. Karen's basis in the land is $ and the corporation assumes a liability on the property in the amount of $ The stock received by Karen has a fair market value of $ If an amount is zero, enter 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? $
Problem
Corporate Formation LO
Karen, in forming a new corporation, transfers land to the corporation in exchange
for percent of the stock of the corporation. Karen's basis in the land is
$ and the corporation assumes a liability on the property in the amount
of $ The stock received by Karen has a fair market value of $
If an amount is zero, enter
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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