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V125BC [204]
3 years ago
14

Diego transfers real estate with an adjusted basis of $648,400 and fair market value of $907,760 to a newly formed corporation i

n exchange for 100% of the stock. The corporation assumes the liability on the transferred real estate in the amount of $771,596.
Determine Diego's recognized gain on the transfer and the basis for his stock. If amount is zero, enter "0". Diego has a recognized gain on the transfer of $ and a basis of $ for his stock.
Business
1 answer:
Monica [59]3 years ago
3 0

Answer:

123,196

Explanation:

Recognized gain

= Liability on transferred real estate - Adjusted basis

= 771,596 - 648,400

= 123,196

Basis = 0

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Answer:

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