Leah Transfers Equipment Basis 400 000 And Fair Market Value Of 500 000 For Addi

Leah transfers equipment(basis 400,000 and fair market value of 500,000)for additional stock in Crow corporation. after the transfer, Leah owns 80% of Crow’s stock. associated with equipment is 1245 depreciation recapture potential of 70,000. as a result of the transfer: