Mario and Lupita Form a Corporation in a Transaction Coming

question 7

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one- half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of

• A) $100,000.
• B) $80,000.
• C) $50,000.
• D) $0.

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Definitions:

Sum

The result of adding two or more numbers or entities together.

Sum

The result of adding two or more numbers together.

Even Integers

Whole numbers that are divisible by 2.

Estimate Time

Approximating the duration that a task or activity is expected to take.