Question: a wants to transfer land worth 100 with a 50...
A wants to transfer land worth $100 with a $50 basis to X for $100 in value.
1. How much income will A realize and recognize if A receives $100 cash from X, and what will be X's basis in the land?
2. Does A's income recognition change if X transfers its own stock to A in the exchange (assume the "general rule" applies)?
3. Will the answer change in the stock case if A is the sole shareholder of X; conceptually, why should it change?