In 2006,Gita Contributed Property with a Basis of $500,000 and a Fair

question 61

Essay

In 2006,Gita contributed property with a basis of $500,000 and a fair market value of $3,000,000 to a qualified small business corporation for all of its common stock.She sells the stock in 2016 for $4,000,000.a.What is the amount of taxable gain on the transaction?
b.Assume instead that the stock was acquired in December,2010.What is the amount of the taxable gain?

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Definitions:

Physiological Need

Basic physical requirements for human survival, such as air, water, food, shelter, and sleep. These needs are the first level in Maslow's hierarchy of needs.

Basic Bodily Requirement

Fundamental needs such as food, water, and shelter that are essential for survival.

Complex Behavior

Actions or conduct that involve multiple factors, including cognitive, social, and emotional components, making them more sophisticated than simple reflexes.

Homeostasis

The process by which living organisms regulate their internal environment to maintain stable, life-supporting conditions.