Bob Transfers Assets with a $100,000 FMV (Basis $60,000)and $70,000

question 46

Multiple Choice

Bob transfers assets with a $100,000 FMV (basis $60,000) and $70,000 of liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $30,000.The corporation assumes the $70,000 mortgage.The transfer qualifies under Sec.351.What is Bob's gain recognized on the transfer?

• A)$0
• B)$10,000
• C)$30,000
• D)$40,000

---

Definitions:

Equipment Utilization

The measure of how effectively a piece of equipment is being used compared to its full potential capacity.

Assembly Line

A production method where components are sequentially assembled to efficiently produce a completed item.

Assembly Line Balancing

The process of optimizing the allocation of tasks among workers or machines in an assembly line to minimize production time and avoid idle time.