Reference no: EM132511919

Three individuals A, B and C form X corporation during the current year. Each transfers the following assets:

1. A transfers Equipment (FMV: $20,000 Basis: $15,000) + Inventory (FMV: $30,000 Basis: $20,000) + GM Stock (FMV: $20,000 Basis: $19,000) in exchange for 56 shares of X stock and unimproved land with a (FMV: $14,000 Basis: $16,000).
2. B transfers a building (FMV: $80,000 Basis: $55,000 and a Mortgage of $70,000) + $10,000 cash in exchange for 20 shares of X stock.
3. C provides Services (FMV: $20,000) + $4,000 Cash

Required:

Question 1: How much must C recognize from this exchange?