Response to the following problem:
Francine incorporated her sole proprietorship by transferring inventory, a building, and land to the corporation in return for 100% of the corporations stock. The property transferred to the corporation had the following fair market values and tax-adjusted bases. FMV: Inventory: $30,000 Building: $130,000 Land: $50,000 Total : $210,000 Tax-Adjusted Basis: Inventory: $10,000 Building: $80,000 Land: $100,000 Total : $190,000 The corporation also assumed a mortgage of $60,000 attached to the building and land. The fair market value of the corporations stock received in the exchange was $150,000.
What amount of gain or loss does Francine realize on the transfer of the property to her corporation?
What amount of gain or loss does Francine recognize on the transfer of the property to her corporation?