Mitchell and Powell form Green Corporation. Mitchell transfers property (basis of $105,000 and fair market value of $90,000) while Powell 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 Powell has a recognized gain of $67,000. B. Neither Mitchell nor Powell has any recognized gain or loss. C. Mitchell has no recognized loss, but Powell 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.
+4
Answers (1)
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “Mitchell and Powell form Green Corporation. Mitchell transfers property (basis of $105,000 and fair market value of $90,000) while Powell ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Home » Business » Mitchell and Powell form Green Corporation. Mitchell transfers property (basis of $105,000 and fair market value of $90,000) while Powell transfers land (basis of $8,000 and fair market value of $75,000) and $15,000 of cash.