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Ruth Transfers Property Worth $200,000 (Basis of $60,000) to Goldfinch

Question 37

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Ruth transfers property worth $200,000 (basis of $60,000) to Goldfinch Corporation. In return, she receives 80% of its stock (worth $180,000) and a long-term note executed by Goldfinch and made payable to Ruth (worth $20,000). Ruth will recognize no gain on the transfer.

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