Owen and Claudette formed Persimmon Inc. on May 1. Owen cont…
Owen and Claudette formed Persimmon Inc. on May 1. Owen contributed cash of $500,000 in return for 50 percent of Persimmon’s stock. Claudette contributed a building and land in return for 50 percent of the stock. The building had a fair market value of $180,000 and an adjusted basis (to Claudette) of $150,000. The land had a fair market value of $420,000 and an adjusted basis (to Claudette) of $500,000. In addition to stock, Persimmon paid Claudette $100,000 in cash. How much gain (loss) must Claudette recognize?
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