QUESTION 7 (CHAPTER 18) Brian Johns is contributing real estate to a wholly-owned corporation during...
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QUESTION 7 (CHAPTER 18) Brian Johns is contributing real estate to a wholly-owned corporation during formation. At the time of formation the real estate is worth $450,000, Brian's basis is $200,000, and the real estate is subject to two mortgages. One mortgage is $90,000 (incurred 10 years prior to corporate formation) and the other is $40,000 (incurred 7 years prior to corporate formation). (a) What is Brian's recognized gain, if any? (b) Assume, instead, that Brian took out the $40,000 mortgage one day before contributing the property to the corporation. What is Brian recognized gain, if any
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