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  3. question 14\ erica transfers land worth $500,000

QUESTION 14\ Erica transfers land worth $500,000 with a basis of $100,000 to...

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Question

Accounting

QUESTION 14\ Erica transfers land worth

$500,000

with a basis of

$100,000

to a newly formed Robin Corporation, for all of it's stock, worth

$300,000

, and

$200,00010

-year note payable to Erica. As a result of the transfer:\ a. Erica does not recognize gain.\ b. Erica recognizes gain of

$400,000

.\ c. Robin Corporation has a basis of

$100,000

in the land.\ d. Robin Corporation has a basis of

$300,000

in the land.\ QUESTION 15

image
Erica transfers land worth $500,000 with a basis of $100,000 to a newly formed Robin Corporation, for all of it's stock, worth $300,000, and $200,00010-year note payable to Erica. As a result of the transfer: a. Erica does not recognize gain. b. Erica recognizes gain of $400,000. c. Robin Corporation has a basis of $100,000 in the land. d. Robin Corporation has a basis of $300,000 in the land

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