Shull company assumes the 45000 mortgage on the land as, Ask an Expert

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Dave formed Shull Company and transferred land ($100,000 fair market value; $40,000 adjusted basis) and equipment ($50,000 fair market value; $10,000 adjusted basis) in exchange for 100 shares of stock. Shull Company assumes the $45,000 mortgage on the land as part of the transfer. Dave's tax consequences are:

Recognized Basis in Gain 100 shares

a. $0 $50,000

b. $5,000 $0

c. $50,000 $60,000

d. $100,000 $100,000

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M988212

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