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What are A and B recognized gains

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QUESTION - A transfers machines valued at $170,000 (basis = $150,000) along with $30,000 cash to AB Corporation and B transfers real property valued at $320,000 (basis = $310,000) to the corporation. A receives 40 percent of the outstanding stock and B receives 60 percent. B also receives $20,000 from the corporation. What are A's and B's recognized gains, respectively, on these transfers?

a. $20,000, 0

b. $0, $20,000

c. $0, $10,000

d. $0, 0

Reference no: EM133056610

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