1. Monk, a sole proprietor, forms a C corporation and transfers property with an adjusted basis of $140,000 and fair market value of $260,000. Monk is the sole owner of the corporation. What amount of gain must Monk recognize in the year he transfers the property? a. $120,000 b. $260,000 c. $0 d. $140,000 2. Based on the facts in the question #1 above, what is Monks basis in the corporations stock? a. $0 b. $260,000 c. $140,000 d. $120,000 3. Based on the facts in question #1 above, what is the corporations basis in the property transferred by Monk? a. $120,000 b. $260,000 c. $0 d. $140,000 4. Based on the facts in question #1 above, if the property transferred was subject to a $60,000 mortgage that was assumed by the corporation, what is Monks basis in the corporations stock? a. $0 b. $60,000 c. $80,000 d. $140,000