... apply All of the above Test Bank 63 2-23 Ten years ago J purchased land for $40,000 The land has appreciated in value and now could be subdivided and sold for $450,000 The land currently constitutes ... Control is measured before the gift and sale and, therefore, no gain or loss is recognized by S on the transfer Control is measured immediately after the gift and sale and, inasmuch as S no longer ... stock and a note in exchange for property The stock and note have a basis of $30,000 and $40,000, respectively On October of the current year, the corporation declared bankruptcy, and the stock and...