Tara Transfers Land with a $600,000 Adjusted Basis and a $700,000

question 100

Multiple Choice

Tara transfers land with a $600,000 adjusted basis and a $700,000 FMV to a corporation in a Sec.351 transfer.Immediately after the transfer,Tara owns 100% of the corporation-stock with a FMV of $660,000.In addition,Tara's $40,000 principal balance on her student loan is legally assumed by the corporation as part of the overall transfer.No other property is transferred.Tara's recognized gain on the transfer is

• A)$0.
• B)$40,000.
• C)$60,000.
• D)$100,000.

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Definitions:

Ego

In psychoanalytic theory, the part of the personality that mediates between desires, the conscience, and reality to make rational decisions.

Childhood

The period in a human's life that spans from birth to adolescence, characterized by growth, learning, and play.

Psychic Birth

refers to a psychoanalytic concept describing the moment or process through which an individual begins to form a separate, independent identity from their primary caregiver, often associated with early childhood development.

Ego

In psychoanalysis, part of the psychic apparatus that mediates between the desires of the id and the morals of the superego, often associated with conscious identity.