On April 2 of the Current Year, Jana Transfers Land

question 52

Essay

On April 2 of the current year, Jana transfers land with a basis of $140,000 and a fair market value of $120,000 to Amish Corporation in exchange for all of its stock. She had originally acquired the land on December 1, 2002. What tax issues arise from the exchange?

---

Definitions:

Rate

The ratio of change in one variable relative to another, often used in contexts of finance (interest rates), growth rates, or other measurements of change.

Decimal Places

The places for digits to the right of the decimal point, representing tenths, hundredths, thousandths, and so forth.

Base

In finance, it typically refers to the basic rate or the initial point of reference from which calculations are made or adjusted.

Decimal Places

The number of digits to the right of the decimal point in a number.