Compute corporations basis of land received

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John transfers land with a tax basis of $5,000 and a fair market value of $6,000 to Pine Corporation in exchange for stock with a fair market value of $3,000 and $2,000 (cash) in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,000 on the land transferred.

Compute the following:

1. John's Amount Realized
2. John's Adjusted Tax Basis
3. John's Gain (Loss) Realized
4. John's Gain (loss) Recognized
5. John's Tax Basis of Stock Received
6. Corporation's Basis of Land Received

Reference no: EM131804773

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