Mary Transfers a Building (Adjusted Basis of $15,000 and Fair

question 42

Multiple Choice

Mary transfers a building (adjusted basis of $15,000 and fair market value of $90,000) to White Corporation. In return, Mary receives 80% of White Corporation's stock (worth $65,000) and an automobile (fair market value of $5,000) . In addition, there is an outstanding mortgage of $20,000 (taken out 15 years ago) on the building, which White Corporation assumes. With respect to this transaction:

• A) Mary's recognized gain is $10,000.
• B) Mary's recognized gain is $5,000.
• C) Mary has no recognized gain.
• D) White Corporation's basis in the building is $15,000.
• E) None of the above.

---

Definitions:

Instant Messaging

Instant messaging is a form of real-time communication through text or media messages sent over the internet between two or more devices or users.

Features

Characteristics or attributes that distinguish an object, person, or concept from others.

Voice Mail Communication

The use of a digital recording system to store voice messages left by callers.

Confidential Information

Sensitive information not to be disclosed to unauthorized persons, protected for privacy or security reasons.