Jeremy Transfers Sec

question 112

Multiple Choice

Jeremy transfers Sec. 351 property acquired three years earlier having a $100,000 basis and a $160,000 FMV to Jeneva Corporation. Jeremy receives all 200 shares of Jeneva stock having a
$140,000 FMV, and a $20,000 90- day Jeneva note. What is Jeremy's recognized gain?

• A) $160,000
• B) $0
• C) $60,000
• D) $20,000