Question 1: Louis exchanges property having an $19,000 adjusted basis and a $37,000 fair market...
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Accounting
Question : Louis exchanges property having an $ adjusted basis and a $ fair market value for shares of the newly created Dog Corporation stock. Ann exchanges legal services worth $ for the remaining shares of Dog Corporation's stock, which of the following is true?
a Ann recognizes no income, and the exchange is nontaxable.
b Ann must recognize $ of income but Louis's transfer of property qualifies under IRC Sec. as nontaxable.
c Ann must recognize $ of income and Louis must recognize $ gain on the exchange.
d The exchange qualifies as a nontaxable exchange under IRC Sec.
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