The Stock of Eagle, Inc Tom Sells Land and a Building to Eagle, Inc

question 119

Essay

The stock of Eagle, Inc.is owned as follows: $$\begin{array} { l r } \text { Tom } & 23 \% \\\text { Tom's uncle } & 22 \% \\\text { Tom's daughter } & 7 \% \\\text { Tom's sister } & 15 \% \\\text { Tom's spouse } & 15 \% \\\text { Tom's nephew } & 8 \% \\\text { Tom's CPA, unrelated } & 10 \%\end{array}$$ Tom sells land and a building to Eagle, Inc.for $212,000.His adjusted basis for these assets is $225,000.Calculate Tom's realized and recognized loss associated with the sale.

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