In 2006,Gita Contributed Property with a Basis of $500,000 and a Fair

question 10

Essay

In 2006,Gita contributed property with a basis of $500,000 and a fair market value of $3,000,000 to a qualified small business corporation for all of its common stock.She sells the stock in 2014 for $4,000,000.What is the amount of taxable gain on the transaction?

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Definitions:

Output

The total amount of goods or services produced by a company, industry, or economy in a given period.

Total Fixed Cost

The total of all expenses that stay unchanged no matter the production volume or output in the short term.

Total Variable Cost

The total of all costs that vary directly with the level of output or production in the short term.

Output

The total amount of goods or services produced by a company, industry, or economy, often measured within a given time period.