1 - b Neither Mitchell nor Lane has any recognized gain or...

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Mitchell and Lane form Green Corporation. Mitchell transfers property (basis of $105,000 and fair market value of $90,000) while Lane transfers land (basis of $8,000 and fair market value of $75,000) and $15,000 of cash. Each receives 50% of Green Corporation's stock (total value of $180,000). As a result of these transfers: a. Mitchell has a recognized loss of $15,000, and Lane has a recognized gain of $67,000.
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Unformatted text preview: b. Neither Mitchell nor Lane has any recognized gain or loss. c. Mitchell has no recognized loss, but Lane has a recognized gain of $15,000. d. Green Corporation will have a basis in the land of $23,000. e. None of the above....
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This note was uploaded on 12/02/2009 for the course MBA MBA taught by Professor Max during the Spring '08 term at SPSU.

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