Individuals Bert and Tariq Form Shark Corporation

question 98

Multiple Choice

Individuals Bert and Tariq form Shark Corporation.Bert transfers equipment with a $290,000 adjusted basis and a $335,000 FMV for 50% of the stock worth $310,000 and a note of Shark Corporation valued at $25,000.Tariq transfers cash of $335,000 in exchange for 50% of the stock of Shark Corporation worth $310,000 and a $25,000 note.Bert's recognized gain is

• A)$0.
• B)$20,000.
• C)$25,000.
• D)$45,000.