Does a corporation recognize a gain or loss on the receipt o

Does a corporation recognize a gain or loss on the receipt of money or other property in exchange for its stock?

Solution

A corporation does not recognize a gain or loss on the receipt of money or other property in exchange for its stock.

Explanation:- Prohibited by the Statute (Law).

Conclusion:- A corporation does not recognize a gain or loss on the receipt of money or other property in exchange for its stock.