Recognizes gain on the transfer

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Eileen transfers property worth $200,000 (basis of $60,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of $20,000) executed by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of:

a. $0

b. $20,000

c. $60,000

d. $140,000

e. None of the above.

Reference no: EM13152152

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