In order to induce blue corporation to build a new manufacturig facili.docx

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In order to induce blue corporation to build a new manufacturig facility in Los angeles, Ca, the city donates land ( fair market value of $ 250,000) and cash of $ 100,000 to he corporation. within several months of the donation, prakeet corporation spends $ 350,000 ( which includes the $ 50,000 received from Los Angeles) on the construction of a new plant located on the doanted land. How much gain or loss does prakeet recognize as a result of these tranaction? Solution land value = $250000 cash = $100000 total spent by prakeet corporation = $350000 amount received from Los Andeles = $50000 Total gain = total amount received - spent Total received = $250000+$100000+$50000 - $350000 (spent) total gain = $50000 .

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