Walter, who owns all of the Ajax Corporation stock, purchases a truck from Ajax Corporation in January The truck cost $12,000 and has a $10,000 adjusted basis Walter pays the truck's $8,000 FMV Later in the same year, Walter sells the truck to an unrelated party for $13,000 With respect to these transactions, A Ajax Corporation reports a loss of $2,000 and Walter reports a gain of $5,000 B Ajax Corporation reports no loss and Walter reports a gain of $3,000 C Ajax Corporation reports no loss and Walter reports a gain of $5,000 D Ajax Corporation reports a loss of $4,000 and Walter reports a gain of $5,000

Question

Walter, who owns all of the Ajax Corporation stock, purchases a truck from Ajax Corporation in January  The truck cost $12,000 and has a $10,000 adjusted basis  Walter pays the truck's $8,000 FMV  Later in the same year, Walter sells the truck to an unrelated party for $13,000  With respect to these transactions, A  Ajax Corporation reports a loss of $2,000 and Walter reports a gain of $5,000  B  Ajax Corporation reports no loss and Walter reports a gain of $3,000  C  Ajax Corporation reports no loss and Walter reports a gain of $5,000  D  Ajax Corporation reports a loss of $4,000 and Walter reports a gain of $5,000

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Walter, who owns all of the Ajax Corporation stock, purchases a truck from Ajax Corporation in January. The truck cost $12,000 and has a $10,000

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