Bob Transfers Assets with a $100,000 FMV (Basis $60,000)and $70,000

question 84

Multiple Choice

Bob transfers assets with a $100,000 FMV (basis $60,000) and $70,000 of business-related liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $30,000.The corporation assumes the $70,000 mortgage.The transfer qualifies under Sec.351.What is Bob's gain recognized on the transfer?

• A)$0
• B)$10,000
• C)$30,000
• D)$40,000

---

Definitions:

Free Radicals

Unstable molecules that can damage cells, contributing to aging and diseases, like cancer. They are produced through normal metabolic processes or from external sources such as pollution.

Metabolism

The complex set of life-sustaining chemical reactions in organisms required for the maintenance of life, involving the conversion of food to energy, and the synthesis and breakdown of body chemicals.

Telomeres

Protective segments of DNA located at the tips of chromosomes.

Cell Division

The process by which a parent cell divides into two or more daughter cells, essential for growth and reproduction.