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Loonis Incorporated and Rhea Company formed LooNR Incorporated by transferring business assets in exchange for...

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Accounting

Loonis Incorporated and Rhea Company formed LooNR Incorporated by transferring business assets in exchange for 1,000 shares of LooNR common
stock. Loonis transferred assets with a $820,000FMV and a $444,000 adjusted tax basis and received 820 shares. Rhea transferred assets with a
$180,000FMV and a $75,000 adjusted tax basis and received 180 shares. Which of the following statements is true?
Multiple Choice
The FMV of Rhea's 180 shares is $180,000.
Rhea's exchange of assets for stock is taxable because Rhea is not in control of LooNR immediately after the exchange.
LooNR recognizes a $105,000 gain on the exchange of its stock for Rhea's assets.
None of these choices are true.
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