Alberts mortgage on the land


Albert tranfers land (basis of $140,000 and fair market value of $320,000) to Gold Corporation for 80% of its stock and a note payable in the amount of $80,000. Gold assumes Albert's mortgage on the land of $200,000.

a. Albert has a recognized gain on the transfer of $140,000.

b. Albert has a recognized gain on the transfer of $80,000.

c.Albert has a recognized gain on the transfer of $60,000.

d.Gold Corporation has a basis in the land of $220,000.

e. None of the above.

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Accounting Basics: Alberts mortgage on the land
Reference No:- TGS080414

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