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Semmy [17]
3 years ago
15

When pheasant corporation was formed under § 351, kristen transferred property (basis of $26,000 and fair market value of $22,50

0) for § 1244 stock. kristen's basis in the pheasant stock is $26,000. three years later, pheasant corporation goes bankrupt and its stock becomes worthless. kristen, who is single, owned the stock as an investment. kristen's loss is:?
Business
1 answer:
Aleks04 [339]3 years ago
5 0
<span>$22,500 ordinary and $3,500 capital.

Hope this helped!</span>
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The adjusting entry is shown below:

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