George transferred his 10% interest to Washington Company as…
George transferred his 10% interest to Washington Company as part of a complete liquidation of the company. In the exchange, he received land with a fair market value of $200,000. George’s basis in the Washington stock was $100,000. The land had a basis to Washington Company of $50,000. What amount of gain does Washington recognize in the exchange and what is George’s basis in the land he receives?