Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rache

Question

1. Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rachel transfers an installment obligation, tax basis of $180,000 and fair market value of $350,000, for additional stock in Cardinal worth $350,000. Rachel has a taxable gain of $180,000. Rachel has a taxable gain of $170,000. Rachel recognizes no taxable gain on the transfer. Rachel has a basis of $350,000 in the additional stock she received in Cardinal Corporation. None of the above. Question 2

1. If a transaction qualifies under

1. Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rachel transfers an installment obligation, tax basis of $180,000 and fair market value of $350,000, for additional stock in Cardinal worth $350,000. Rachel has a taxable gain of $180,000. Rachel has a taxable gain of $170,000. Rachel recognizes no taxable gain on the transfer. Rachel has a basis of $350,000 in the additional stock she received in Cardinal Corporation. None of the above. Question 2

1. Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rachel transfers an installment obligation, tax basis of $180,000 and fair market value of $350,000, for additional stock in Cardinal worth $350,000. Rachel has a taxable gain of $180,000. Rachel has a taxable gain of $170,000. Rachel recognizes no taxable gain on the transfer. Rachel has a basis of $350,000 in the additional stock she received in Cardinal Corporation. None of the above. Question 2

Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rachel transfers an installment obligation, tax basis of $180,000 and fair market value of $350,000, for additional stock in Cardinal worth $350,000. Rachel has a taxable gain of $180,000. Rachel has a taxable gain of $170,000. Rachel recognizes no taxable gain on the transfer. Rachel has a basis of $350,000 in the additional stock she received in Cardinal Corporation. None of the above. Question 2 Rachel owns 100% of the stock of Cardinal Corporation. In the current year Rachel transfers an installment obligation, tax basis of $180,000 and fair market value of $350,000, for additional stock in Cardinal worth $350,000. Rachel has a taxable gain of $180,000. Rachel has a taxable gain of $170,000. Rachel recognizes no taxable gain on the transfer. Rachel has a basis of $350,000 in the additional stock she received in Cardinal Corporation. None of the above.

1. If a transaction qualifies under

1. If a transaction qualifies under

If a transaction qualifies under If a transaction qualifies under Rachel has a taxable gain of $180,000. Rachel has a taxable gain of $170,000. Rachel recognizes no taxable gain on the transfer. Rachel has a basis of $350,000 in the additional stock she received in Cardinal Corporation. None of the above.

Explanation / Answer

true

Rachel recognizes no taxable gain on the transfer.

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