Question

Jason sells stock with an adjusted basis of $66,000 to JJ Inc., his 60% owned corporation, for its fair market value of $60,000. JJ Inc. sells the stock three years later for $67,000. JJ Inc.'s recognized gain or loss on the sale will be

Answer 1

Answer:

JJ Inc.'s recognized gain or loss on the sale will be $1000

Explanation:

amount recognized gain or loss = stock sell price three years later - sells stock with an adjusted basis

= $(67000 - 66000)

= $1000

Therefore, JJ Inc.'s recognized gain or loss on the sale will be $1000

Answer 2

Answer:

amount recognized gain or loss = stock sell price three years later - sells stock with an adjusted basis

= $(67000 - 66000)

= $1000

Therefore, JJ Inc.'s recognized gain or loss on the sale will be $1000

Explanation: