In 2006, Gita contributed property with a basis of $500,000 and a fair market value of $3,000,000 to a qualified sm business corporation for all of its common stock. She sells the stock in 2018 for $4,000,000.
a. What is the amount of taxable gain on the transaction?
b. Assume instead that the stock was acquired in December 2010. What is the amount of the taxable gain?

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The Answer of In 2006, Gita contributed property with a basis of $500,000 and a fair market value of $3,000,000 to a qualified sm business corporation for all of its common stock. She sells the stock in 2018 for $4,000,000.
a. What is the amount of taxable gain on the transaction?
b. Assume instead that the stock was acquired in December 2010. What is the amount of the taxable gain?

In 2006, Gita Contributed Property with a Basis of $500,000