Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation...
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Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporations stock. The property transferred to the corporation had the following fair market values and adjusted bases: FMV Adjusted Basis Inventory $ 21,000 $ 11,300 Building 198,000 172,500 Land 267,000 364,000 Total $ 486,000 $ 547,800 The corporation also assumed a mortgage of $125,250 attached to the building and land. The fair market value of the corporations stock received in the exchange was $360,750
What amount of gain or loss does Carla realize on the transfer of the property to the corporation?
b. What amount of gain or loss does Carla recognize on the transfer of the property to the corporation?
c. What is Carlas basis in the stock she receives in her corporation?
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