Aiden and Addison Form Dove Corporation with the Following Investments

question 123

Multiple Choice

Aiden and Addison form Dove Corporation with the following investments: Dove issues stock equally to Aiden and Addison.One of the tax consequences of these transfers is:

• A) Dove has a basis in the building of $400,000.
• B) Addison has a recognized loss on the building of $100,000.
• C) Addison has a basis in the Dove stock of $800,000.
• D) Addison has a recognized gain on land of $300,000 but no recognized loss on the building.
• E) None of the above.

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