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[1] Mr. Pine transferred equipment (with a FMV of $20,000 and an adjusted basis of $15,000) and legal services (FMV of $10,000) to X Corporation

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[1] Mr. Pine transferred equipment (with a FMV of $20,000 and an adjusted basis of $15,000) and legal services (FMV of $10,000) to X Corporation for 85% of its outstanding stock. What is the amount of income Mr. Pine must recognize due to this transfer? A. $0 B. $5,000 C. $10,000 D. $15,000

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