Example c 4-16 FMV of land $25,000 Mortgage 35000 Adjusted basis 20.000 Capital Gain 15.000 Shareholder's basis $35.000 1515 Example C 4-16 FMV of land $25,000 Mortgage 35,000 Adjusted basis 20,000 Capital Gain 15,000 Shareholder’s basis $35,000