ann, irene, and bob incorporate their respective businesses and form Dove Corporation. Ann exchanges her property (basis of $100,000 and fair market value of $400,000) for 200 shares in Dove corporation on March 1, 2005. Irene exhanges her property (basis of $140,000 and fair market value of $600,000) for 300 shares in Dove Corporation on April 11, 2005. Bob transfer his property (basis of $250,000 and fair market value of $1,000,000) for 500 shares in Dove Corporation on May 15, 2007. Bob's transfer is not part of a prearranged plan with Ann and Irene to incorporate their businesses. What gain if any will bob recognize on the transfer?

750,000

75,000 The exchange is taxable because Bob did not hold 80% control in Dove after the transfer.

750K

To determine the gain that Bob will recognize on the property transfer, we need to calculate the difference between the fair market value and the basis of his property.

In this case, Bob's property has a basis of $250,000 and a fair market value of $1,000,000. The gain is calculated as follows:

Gain = Fair Market Value - Basis
= $1,000,000 - $250,000
= $750,000

Therefore, Bob will recognize a gain of $750,000 on the property transfer into Dove Corporation.