Business, 31.12.2019 00:31, TrueKing184

Tom transfers a building that originally cost $40,000 to paul corp. in exchange for 100% of the corporation's stock. the adjusted basis of the building is $20,000. at the time of the transfer, the building is subject to a liability of $30,000 (which has no business purpose to it) and it worth $60,000. how much gain must tom recognize?

a. 0

b. 10,000

c. 30,000

d. 40,000

Answers: 3

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Tom transfers a building that originally cost $40,000 to paul corp. in exchange for 100% of the corp...