Mitchell and Lane form Green Corporation. Mitchell transfers property (basis of $105,000 and fair market value of $90,000) while Lane transfers land (basis of $8,000 and fair market value of $75,000) and $15,000 of cash. Each receives 50% of Green Corporation?s stock (total value of $180,000). As a result of these transfers;a. Mitchell has a recognized loss of $15,000, and Lane has a recognized gain of $67,000.;b. Neither Mitchell nor Lane has any recognized gain or loss.;c. Mitchell has no recognized loss, but Lane has a recognized gain of $15,000.;d. Green Corporation will have a basis in the land of $23,000.;e. None of the above.
Paper#26007 | Written in 18-Jul-2015Price : $32