A Transfers Machines Valued at $170,000 (Basis = $150,000) Along

question 71

Multiple Choice

A transfers machines valued at $170,000 (basis = $150,000) along with $30,000 cash to AB Corporation and B transfers real property valued at $320,000 (basis = $310,000) to the corporation.A receives 40 percent of the outstanding stock and B receives 60 percent.B also receives $20,000 from the corporation.What are A's and B's recognized gains, respectively, on these transfers?

• A)$20,000, 0
• B)0, $20,000
• C)0, $10,000
• D)0, 0

---

Definitions:

Dark-Skinned Man

A descriptive term referring to an individual with a higher melanin pigment concentration in the skin, commonly associated with people of certain racial or ethnic backgrounds.

Sidewalk

A paved path for pedestrians at the side of a road.

Peter Sandiford

A name that may refer to a specific individual; without additional context, it's challenging to provide a precise definition.

IQ

IQ, or Intelligence Quotient, is a measure of a person's cognitive ability compared to their age group, often assessed through standardized testing.