The City of Springfield donates land worth $250,000 to Deuce Corporation to induce it to locate in Springfield and provide 1,000 jobs for its citizens. How much gross income must Deuce Corporation recognize because of the land contribution, and what is the land's basis to Deuce Corporation?

A. $250,000 income; $250,000 basis
B. $0 income; $250,000 basis
C. $250,000 income; $0 basis
D. $0 income; $0 basis


Answer: A

Business

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