F and G Formed a Corporation on March 1 This

question 51

Multiple Choice

F and G formed a corporation on March 1 this year.F transferred equipment worth $40,000 (basis $15,000) in exchange for 40 shares of stock, and performed services worth $10,000 in exchange for 10 shares of stock.In exchange for 50 shares of stock, G contributed land worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed.What amount of gross income must G recognize due to the incorporation transaction?

• A)$0
• B)$20,000
• C)$11,000
• D)$61,000
• E)None of the above