tax - 1 .(basisof$40,$100,000,(basisof$20,000andfair...

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1.  Wade and Paul form Swan Corporation with the following investments.  Wade transfers machinery  (basis of $40,000 and fair market value of $100,000), while Paul transfers land (basis of $20,000 and fair  market value of $90,000) and services rendered (worth $10,000) in organizing the corporation.  Each is  issued 25 shares in Swan Corporation.  With respect to the transfers: Wade has no recognized gain; Paul recognizes income/gain of $80,000. Neither Wade nor Paul has recognized gain or income on the transfers. Swan Corporation has a basis of $30,000 in the land transferred by Paul. Paul has a basis of $30,000 in the 25 shares he acquires in Swan Corporation. None of the above. 2. Erica transfers land worth $500,000, basis of $100,000, to a newly formed corporation, Robin  Corporation, for all of Robin’s stock, worth $300,000, and a 10-year note. The note was executed by  Robin and made payable to Erica in the amount of $200,000. As a result of the transfer: Erica does not recognize gain. Erica recognizes gain of $400,000. Robin Corporation has a basis of $100,000 in the land. Robin Corporation has a basis of $300,000 in the land. None of the above.
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tax - 1 .(basisof$40,$100,000,(basisof$20,000andfair...

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