Determine the amount of gain to be recognized by ben


Ben Brown transferred property that had an adjusted basis to him of $40,000 and a fair market value of $50,000 to Crackers Corporation in exchange for 100 percent of Crackers's only class of stock and $15,000 cash. At the time of the transfer, the stock had a fair market value of $35,000. What is the amount of gain to be recognized by Ben?

a. $0

b. $10,000

c. $15,000

d. $25,000

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Accounting Basics: Determine the amount of gain to be recognized by ben
Reference No:- TGS088205

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