Homework: Chapter C:2 Homework Save MyLab Accounti Score: 0 of 1 pt 1 of 6 (0 co
ID: 2601650 • Letter: H
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Homework: Chapter C:2 Homework Save MyLab Accounti Score: 0 of 1 pt 1 of 6 (0 complete) | HW Score: 0%, 0 of 6 pts Main Menu Assignments Do Homework Take a Quiz/Test PC:2-36 (similar to) Question Help For the last five years, Amy and George each have owned 40 of the 80 outstanding shares of Zany Corporation stock. Amy transfers land having a(n) $18,000 basis and a(n) $24.000 FMV to Zany for an additional 20 shares of Zany stock. George transfers $1,200 cash to Zany for one additional share of Zany stock. Read the requirement. What amount of the gain or loss must Amy recognize on the exchange? Amy realizes a (n and recognizes Choose from any list or enter any number in the input fields and then click Check Answer. part remaining Clear All Check AnswerExplanation / Answer
The basis value of the Amy land = $18000
Transfer price received from Zany = 20 shares * $1200 per share = $24000
Gain recognised by Amy = Transfer price - cost of land = $24000 - $18000 = $6000
Answer : Amy realizes an $24000 and recognizes $6000 as gain on the exchange.
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