Transferring land to the corporation

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

a. What's the amount of gain or loss that must be recognized by Karen on this transfer?

b. What's the amount of Karen's basis in the corporations stock?

c. What's the amount of the corporations basis in the land?

Reference no: EM1359202

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