Tara Transfers Land with a $690,000 Adjusted Basis and a $700,000

question 17

Multiple Choice

Tara transfers land with a $690,000 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 $615,000.In addition,$85,000 of liabilities are assumed by the corporation with respect to the transfer.No other property is transferred.Tara's recognized gain on the transfer is

• A)$0.
• B)$5,000.
• C)$10,000.
• D)$15,000.

---

Definitions:

Management Accounting Information

Financial data and reports that are used by internal management for decision-making, planning, and control purposes.

Internal Management

Refers to the administrative practices, policies, and procedures implemented within a company to ensure its smooth operation and achievement of goals.

Institutional Theory

A theory that examines the extent to which companies can become successful by conforming to the norms and rules of their environmental context.

Environmental Management Accounting System

An accounting framework that integrates environmental and financial information to aid in internal environmental management decisions.