Albert Transfers Land (Basis of $140,000 and Fair Market Value

question 16

Multiple Choice

Albert transfers land (basis of $140,000 and fair market value of $320,000) to Gold Corporation for 80% of its stock and a note payable in the amount of $80,000. Gold assumes Albert's mortgage on the land of $200,000.

• A) Albert has a recognized gain on the transfer of $140,000.
• B) Albert has a recognized gain on the transfer of $80,000.
• C) Albert has a recognized gain on the transfer of $60,000.
• D) Gold Corporation has a basis in the land of $220,000.
• E) None of the above.

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Definitions:

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