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Corporation S sold investment land to Corporation P for $100,000 cash. Corporation Ss basis in...

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Accounting

Corporation S sold investment land to Corporation P for $100,000 cash. Corporation Ss basis in the land was $167,000. Mr. and Mrs. J own 100 percent of the stock of both corporations.

a) What is Corporation Ps tax basis in the investment asset purchased from Corporation S?

b) Corporation P holds the land as an investment for seven years before selling it to an unrelated buyer. Compute the gain or loss recognized by Corporation P if the amount realized on the sale is (1) $175,000, (2) $120,000, or (3) $95,000.

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