The following information applies to the questions displayed below.) Carla incorporated her sole proprietorship by...
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The following information applies to the questions displayed below.) Carla incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100 percent of the corporation's stock. The property transferred to the corporation had the following fair market values and adjusted tax bases: Inventory Building Land Total FMV $ 41,000 152,000 268,500 $ 461,500 Adjusted Tax Basis $ 21,000 144,000 311,000 $ 476,000 The corporation also assumed a mortgage of $126,000 attached to the building and land. The fair market value of the corporation's stock received in the exchange was $335,500. (Negative amounts should be indicated by a minus sign. Leave no answer blank. Enter zero if applicable.) Problem 13-44 Part a (Algo) a. What amount of gain or loss does Carla realize on the transfer of the property to the corporation? Fair market value of stock received Mortgage assumed by corporation Amount realized Adjusted tax basis of the property transferred Loss realized $ 0 b. What amount of gain or loss does Carla recognize on the transfer of the property to her corporation? Gain or loss recognized c. What is Carla's basis in the stock she receives in her corporation? Tax basis
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