ACCT 424 Week 8 Final Exam Answers

ecognized loss;
Warren has a
recognized gain
of $30,000.
Tan Corporation
has a basis in the
land of $45,000.
None of the
above
2. (TCO 1)
Samantha
transferred land
worth $200,000
(basis of
$40,000) to
Lava
Corporation, an
existing entity,
for 300 shares
of its stock.
Lava
Corporation has
two other
shareholders,
Timothy and
Brett, each of
whom holds 50
shares. Which
happens with
respect to the
transfer? (Points
: 5)
Samantha
has no
recognized gain.
Lava
Corporation has