2. Accounting
3. a wants to transfer land worth 100 with a 50...

# Question: a wants to transfer land worth 100 with a 50...

###### Question details

A wants to transfer land worth $100 with a$50 basis to X for $100 in value. REQUIRED: 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?