Question
Sami transferred property with a fair market value of $600 and a tax basis of $300 to a corporation in exchange for stock with a
Sami transferred property with a fair market value of $600 and a tax basis of $300 to a corporation in exchange for stock with a fair market vallue of $600. In addition, Sami received stock with a fiar market value of $50 in exchange for services provided to the coporation in the incoporation proocess. Which of the following statements best describes the tax result to Sami beecause of the exchange. a. Sami will not recognize $50 of compensataion income, but she can count the shares of stock she receives in exchange for services in determining if the control test is met under Section 351. b. Sami will recognize $50 of compensation income, but she can count the shares of stock she receives in excange for services in determining if the control test is met under sec. 351. c. Sami will recognize $50 of compensation, but she cannot count the shares she receives in exchange for services..... d. Samil will not recognize $50 compensation and she cannot count the shares of stock she receives in exchange for servieces in determing...
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