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Corporation X receives an acre of land from Company Y, a related entity. At the...

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Accounting

Corporation X receives an acre of land from Company Y, a related entity. At the time of the transfer the land had a FMV of $8,000 and adjusted basis of $10,000. Company Y purchased the land for $3,000. If Corporation X sells the land for $12,000, what is the recognized gain?

Group of answer choices

$2,000

$12,000

$9,000

$4,000

Answer & Explanation Solved by verified expert
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