How much gain was recognized by sue

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Question - Sue transferred a building to her newly formed corporation, SUECO, Inc. The building had an adjusted basis to Sue of $75,000 and a fair market value of $150,000 on the date of the transfer. The building was encumbered by a mortgage of $100,000, which SUECO Inc. assumed. On the same day, and in exchange for the building she transferred to SUECO Inc., Sue received 100 percent of SUECO's only class of stock. How much gain was recognized by Sue as a result of this transaction?

a. 0.

b. $25,000.

c. $50,000.

d. $75,000.

Reference no: EM131831853

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