Reference no: EM132481862
Question - Josh Holmes and Mira Hilt formed Ambrose Inc., on January 1, 2013. Josh contributes cash of $22,000,000 and Mira contributes property worth $22,000,000, each for 50 percent of Ambrose stock. Mira's basis in the property she contributed, which includes operating facilities, was $12,000,000. On January 2, 2019, Mira sells her stock to Cheryl Bazley for $25,000,000. As a result of the sale, how much Mira will recognize a gain?
1) $0
2) $13,000,000
3) $3,000,000
4) $10,000,000