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John transfers land with a tax basis of $5,000 and a fair market value of $6,000 to Pine Corporation in exchange for stock with a fair market value of $3,000 and $2,000 (cash) in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,000 on the land transferred.

Compute the following:

1. John's Amount Realized

2. John's Adjusted Tax Basis

3. John's Gain (Loss) Realized

4. John's Gain (loss) Recognized

5. John's Tax Basis of Stock Received

6. Corporation's Basis of Land Received.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91985325

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