This exact question has 2 different answers from Chegg. In 20X1, Carol acquired

Question

This exact question has 2 different answers from Chegg. In 20X1, Carol acquired sufficient stock of Corporation Y in an exchange to meet the nonrecognition of gain or loss requirements. Stock was acquired as follows (stock listed at fair market value): Received $30,000 in stock for cash of $30,000, Received $100,000 in stock for property with adjusted basis of $50,000, Received $15,000 in stock for services rendered. What is the total amount includible in Carol's income? A. $15,000 B. $50,000 C. $65,000 D. $115,000 The exact question has both A&C as the answer. What is the correct answer?

Explanation / Answer

1)Purchase of stock for cash constitute a non taxable event since the shareholder has paid cash to acquire it.

2)Transfer of property to acquire shares of controlled corporation is a non taxable event

3)Transfer of service to acquire stock is a taxable event .In such case The basis of stock is the amount of gain recognised

Present scenario :

correct option is "A" -15000

1)Received $30,000 in stock for cash of $30,000 Non taxable 2)Received $100,000 in stock for property with adjusted basis of $50,000 Non taxable 3)Received $15,000 in stock for services rendered Taxable ,15000

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