Cherie transfers two assets to a newly-created corporation.The first asset has an adjusted basis of $40,000 and a FMV of $50,000.The second asset has an adjusted basis of $35,000 and a FMV of $25,000.Cherie receives stock with FMV of $66,000 and $9,000 cash.Cherie must recognize a gain of
A)$10,000.
B)$6,000.
C)$5,000.
D)$4,000.

Question

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The Answer of Cherie transfers two assets to a newly-created corporation.The first asset has an adjusted basis of $40,000 and a FMV of $50,000.The second asset has an adjusted basis of $35,000 and a FMV of $25,000.Cherie receives stock with FMV of $66,000 and $9,000 cash.Cherie must recognize a gain of
A)$10,000.
B)$6,000.
C)$5,000.
D)$4,000.

Cherie Transfers Two Assets to a Newly-Created Corporation