Question
To encourage Pillar, Inc. to build a plant near its borders, the city of Haven, Iowa gifts 20 acres of land with a value of
To encourage Pillar, Inc. to build a plant near its borders, the city of Haven, Iowa gifts 20 acres of land with a value of $150,000 and a basis of $30,000 to Pillar. The city did not have a master development plan.
- What is the income recognized by Pillar?
- What is Pillar's basis in the land?
- Same as (a) and (b), but Haven is not a city, but a minority corporate shareholder in Pillar?
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Intermediate Accounting
Authors: Kin Lo, George Fisher
3rd Edition Vol. 1
133865940, 133865943, 978-7300071374
