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Business, 14.12.2019 07:31 xnadertheking

Jane and walt form yellow corporation. jane transfers equipment worth $950,000 (basis of $200,000) and cash of $50,000 to yellow corporation for 50% of its stock. walt transfers a building and land worth $1,050,000 (basis of $400,000) for 50% of yellow's stock and $50,000 in cash. a.jane recognizes no gain; walt recognizes a gain of $50,000.b. jane recognizes a gain of $50,000; walt recognizes no gain. c.neither jane nor walt recognizes gain. d.jane recognizes a gain of $750,000; walt recognizes a gain of $650,000.e. none of the above.

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