Annie owns land worth $75 (adjusted basis of $1). She transfers it to Land Corp...
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Accounting
Annie owns land worth $75 (adjusted basis of $1). She transfers it to Land Corp for voting common stock worth $75 which is 75% of the stock. At the same time Helmut agrees to provide legal services for Land Corp in exchange for stock worth 25$. There is no other stock in Land Corp
a. Does Annie recognize gain on the transfer and if yes, how much?
b. What is LAnd Corp basis in the land?
c. Would your answer change if Helmust received 20 shares for services and 5 shares for Cash?
THIS HAS TO DO WITH SECTION 351 corp tax
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