A corporation sold land with an adjusted basis of 240000


Question - A corporation sold land (with an adjusted basis of $240,000) for $200,000 to its majority shareholder.

A. What is the company's recognized gain or loss on the sale?

B. What is the shareholder's adjusted basis in the land?

C. Three years later, the shareholder ssells the land for $220,000. What is his realized gain or loss?

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Accounting Basics: A corporation sold land with an adjusted basis of 240000
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