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Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The
Zhang incorporated her 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 adjusted bases Adjusted FMV Basis Building Land Total Inventory 77,200 38,600 101,000 211,400 286,000 $418,600 $425,600 130,000 The corporation also assumed a mortgage of $101,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $317,600. The transaction met the requirements to be tax-deferred under S351 (Negative amounts should be indicated by a minus sign. Leave no answer blank Enter zero if applicable.) Problem 19-39 Part a a. What amount of gain or loss does Zhang realize on the transfer of the property to her corporation? Gain or loss realized
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