Question: 22. On July 1, 2010, in connection with a recapitalization of Yorktown Corporation, Robert Moore exchanged 1,000 shares of stock that cost him $95,000 for

22. On July 1, 2010, in connection with a recapitalization of Yorktown Corporation, Robert Moore exchanged 1,000 shares of stock that cost him $95,000 for 1,000 shares of new stock worth $108,000 and bonds in the principal amount of $10,000 with a fair market value of $10,500.

What is the amount of Moore’s recognized gain during 2010?

a. $0

b. $10,500

c. $23,000

d. $23,500

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