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:

Great Exhibition

The first World's Fair, held in 1851 in London, showcasing the achievements of the Industrial Revolution and cultural artifacts.

Prefabricated Elements

Manufactured units or components that are produced in a factory and then transported to a construction site for quick assembly.

Romantic-Style Building

A construction that embodies the aesthetics of the Romantic period, focusing on emotion, nature, and historical nostalgia.

Islamic Domes

Architectural elements often seen in mosque design, characterized by their rounded shapes and significance in Islamic culture.