8. Carl transfers land with a fair market value of $120,000, basis of $30,000, to a new corporation in exchange for 85 percent of the corporation’s stock. The land is subject to a

$40,000 liability, which the corporation assumes. What amount of gain must Carl recognize as a result of this transaction?

a. $0

b. $40,000

c. $30,000

d. $10,000

e. None of the above LO 11.7