Kevin owns 100 of the stock of cardinal corporation. in the, Ask an Expert

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Kevin owns 100% of the stock of Cardinal Corporation. In the current year, Kevin transfers an installment obligation (basis of $30,000 and fair market value of $200,000) for additional stock in Cardinal worth $200,000. Which gain, if any, will Kevin recognize on the transfer?

a) Kevin recognizes no taxable gain on the transfer.

b) Kevin has a taxable gain of $170,000.

c) Kevin has a taxable gain of $180,000.

d) Kevin has a basis of $200,000 in the additional stock he received in Cardinal Corporation.

e) None of the above

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M943041

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