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10) Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualies under Sec.

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10) Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualies under Sec. 351. M Basis 35,000 40,000 20,000 Max's recognized gain is A) $3,000. B) $5,000. C) $7,000. D) $10,000

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