Tim,a cash basis taxpayer,incorporates his sole proprietorship.He transfers the following items to newly created Wren Corporation. 
With respect to this transaction:
A) Wren Corporation's basis in the building is $110,000.
B) Tim has no recognized gain.
C) Tim has a recognized gain of $25,000.
D) Tim has a recognized gain of $5,000.
E) None of the above.
Correct Answer:
Verified
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