Heather and Howie form HH Company.In exchange for 50% of the stock,Heather contributes cash of $7,000.For the remaining 50%,Howie contributes a truck with a FMV of $7,000 (basis of $10,000) .Which of the following statements is correct?
A) Howie will report a loss of $3,000.
B) The basis of the truck to HH Company is $7,000.
C) Howie will have a basis in his stock of $10,000.
D) All of the statements are correct.
Correct Answer:
Verified
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