Beth Transfers an Asset Having an FMV of $200,000 and an Adjusted

question 61

Multiple Choice

Beth transfers an asset having an FMV of $200,000 and an adjusted basis of $150,000 to ABC Corporation in a Sec. 351 transaction. Beth receives in exchange ABC common stock having an FMV of $175,000 and Zeus Corporation common stock (a capital asset) having an FMV of $25,000 and a basis of $10,000 to ABC Corporation. ABC Corporation must recognize

• A) a $50,000 capital gain.
• B) no gain.
• C) a $15,000 capital gain.
• D) a $25,000 capital gain.

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