Corporation X receives an acre of land from Company Y, a related entity. At the...
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Accounting
Corporation X receives an acre of land from Company Y, a related entity. At the time of the transfer the land had a FMV of $8,000 and adjusted basis of $10,000. Company Y purchased the land for $3,000. If Corporation X sells the land for $12,000, what is the recognized gain?
Group of answer choices
$2,000
$12,000
$9,000
$4,000
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