Does income recognition change transfers stock to exchange

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Reference no: EM133261381

A wants to transfer land worth $100 with a basis of $50 to X for $100 in value. How much income will A realize and recognize if A receives $100 cash from X, and what will be X's basis in the land? Does A's income recognition change if X transfers its own stock to A in the exchange (assume the "general rule" apples)? Will the answer change in the stock case if A is the sole shareholder of X; conceptually,, why should it change?

Reference no: EM133261381

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