What is Ruths realized and recognized gain

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Question - In 20x3 Ruth Rainer incorporated her office building with a basis of $40,000, a mortgage of $55,000, a value of $100,000, and depreciation recapture potential of $7,000. She received stock worth $45,000. Ruth had purchased the building in 20x1.

Required -

1. What is Ruth's realized and recognized gain? What character is it?

2. What is Ruth's basis in her stocks?

3. What is the corporation's basis in the building?

4. When do the holding periods start?

Reference no: EM132533332

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