Shania,Taylor,and Kelly form a corporation with the following contributions.

A)If the corporation is a C corporation,Taylor has a recognized gain of $40,000,a stock basis of $100,000,and the corporation has a basis for the land of $100,000.
B)If the corporation is an S corporation,Kelly has a recognized gain or loss of $0,a stock basis of $110,000,and the corporation has a basis for the building of $110,000.
C)If the corporation is a C corporation,Shania has a recognized gain or loss of $0,a stock basis of $100,000,and the corporation has a basis for the cash of $100,000.
D)Only a.and c.are correct.
E)Only b.and c.are correct.

Question

Shania,Taylor,and Kelly form a corporation with the following contributions.

A)If the corporation is a C corporation,Taylor has a recognized gain of $40,000,a stock basis of $100,000,and the corporation has a basis for the land of $100,000. 
B)If the corporation is an S corporation,Kelly has a recognized gain or loss of $0,a stock basis of $110,000,and the corporation has a basis for the building of $110,000. 
C)If the corporation is a C corporation,Shania has a recognized gain or loss of $0,a stock basis of $100,000,and the corporation has a basis for the cash of $100,000. 
D)Only a.and c.are correct. 
E)Only b.and c.are correct.

Quizplus · Accepted Answer

The Answer of Shania,Taylor,and Kelly form a corporation with the following contributions.

A)If the corporation is a C corporation,Taylor has a recognized gain of $40,000,a stock basis of $100,000,and the corporation has a basis for the land of $100,000. 
B)If the corporation is an S corporation,Kelly has a recognized gain or loss of $0,a stock basis of $110,000,and the corporation has a basis for the building of $110,000. 
C)If the corporation is a C corporation,Shania has a recognized gain or loss of $0,a stock basis of $100,000,and the corporation has a basis for the cash of $100,000. 
D)Only a.and c.are correct. 
E)Only b.and c.are correct.

Shania,Taylor,and Kelly Form a Corporation with the Following Contributions