Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualifies under Sec.351. Max's recognized gain is
A)$3,000.
B)$5,000.
C)$7,000.
D)$10,000.

Question

Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualifies under Sec.351.  Max's recognized gain is
A)$3,000. 
B)$5,000. 
C)$7,000. 
D)$10,000.

Quizplus · Accepted Answer

The Answer of Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualifies under Sec.351.  Max's recognized gain is
A)$3,000. 
B)$5,000. 
C)$7,000. 
D)$10,000.

Max Transfers the Following Properties to a Newly Created Corporation