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:

Perineal Muscles

Muscles located in the perineum, the area between the anus and the genitals, that support the pelvic floor and are involved in functions such as urinary control and sexual activity.

Physiological Signals

Biological data generated by the body, used to measure and assess bodily functions, such as heart rate, brain activity, and muscle movement.

Urinary System

The body's drainage system for removing wastes and extra water, including the kidneys, ureters, bladder, and urethra.

Ureters

Tubes that carry urine from the kidneys to the bladder.