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82. In 2018, Sally transferred a building with an adjusted basis of $40,000 and a fair...

82.

In 2018, Sally transferred a building with an adjusted basis of $40,000 and a fair market value of $45,000 to Sandy Corporation. In exchange, she received the following:

  1. 80% of Sandy Corporation's only class of stock, FMV of $20,000

  2. Equipment with a FMV of $25,000 and an adjusted basis of $10,000

What is Sandy Corporation's basis in the building received in the transfer?

  1. $5,000

  2. $25,000

  3. $45,000

  4. $50,000

  5. None of the above

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Answer #1

ANSWER:-

(c).45000

fair market value of class of stock.........................................$20000

fair market value of equipment..............................................$25000

Sandy corporation received building in the transfer......$45000

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