Ann and Irene transfer their respective businesses and form AIB Corporation. Ann

Question

Ann and Irene transfer their respective businesses and form AIB Corporation. Ann exchanges her property with a basis to Ann of $100,000 and fair market value of $400,000 for 200 shares in AIB Corporation on March 1, 2009. Irene exchanges her property with a basis of $140,000 and fair market value of $600,000 for 300 shares in AIB Corporation on April 11, 2009. Bob transfers his property with a basis of $250,000 and fair market value of $1,000,000 for 500 shares in AIB Corporation on May 15, 2011. Bob

Explanation / Answer

yes Bob will recognize a gain of (1000000-250000) 750000

A. $0.

B. $250,000.

C. $750,000.

D. $1,000,000.

E. None of the above.

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