What is the amount of taxable gain on the transaction


In 2006, Ellen contributed property with a basis of $500,000 and a fair market value of $3,000,000 to a qualified small business corporation for all of its common stock. She sells one-half of the stock after five years for $4,000,000. What is the amount of taxable gain on the transaction?

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Accounting Basics: What is the amount of taxable gain on the transaction
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