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

question 16

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 these.

---

Definitions:

Eligible To Work

Meeting the necessary requirements or conditions to be hired for employment, often involving legal authorization and qualifications.

Résumé Format

The structured way in which a job applicant's personal, educational, and professional information is presented.

Chronological

Pertaining to events ordered by time.

Cover Letter

A letter accompanying a job application that details the applicant's qualifications and enthusiasm for the vacancy.