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Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the...

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Accounting

Zhang incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation
in return for 100 percent of the corporation's stock. The property transferred to the corporation had the
following fair market values and adjusted tax bases:
The corporation also assumed a mortgage of $100,000 attached to the building and land. The fair market
value of the corporation's stock received in the exchange was $300,000.
Note: Negative amount should be indicated by a minus sign. Leave no answer blank. Enter zero if
applicable.
Problem 19-40 Part f (Static)
f. Suppose the corporation assumed a mortgage of $500,000 attached to the building and land. The fair market value of the
building is $250,000 and the fair market value of the land is $530,000. The fair market value of the stock remains $300,000.
What is Zhang's tax basis in the stock received in the exchange?
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