Basira Transfers Land with a FMV of $900,000 to a Newly

question 68

Multiple Choice

Basira transfers land with a FMV of $900,000 to a newly formed corporation in exchange for all of the stock. The land has a basis of $500,000 and debt of $300,000. Basira's taxable gain from this transaction is:

• A) $0.
• B) $300,000.
• C) $400,000.
• D)$500,000.

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