Land to the corporation in exchange

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Karen, in forming a new corporation, transfers land to the corporation in exchange for the 100 percent of the stock of the corporation. Karen's basis in the land is $275,000, and the corporation assumes a liability on the property in the amount of $300,00. The stock received by Karen has a fair market value of $550,000.

a) What is the amount of gain or loss that must be recognized by Karen on his transfer?

b) What is the amount of Karen's basis in the corporation's stock?

c) What is the amount of the corporation's basis in the land?

Reference no: EM13140612

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