13. Gary owns all 250 shares of NEIU Corporation stock valued at $300,000. Cristal, a new shareholder, receives 250 newly issued shares from NEIU Corporation in exchange for inventory with an adjusted basis of $150,000 and an FMV of $200,000. Which of the following statements is correct?

A) Maria may defer the recognition of any tax until the stock is sold.

A) No gain will be recognized by Maria.

C) The transaction results in $50,000 of capital gain for Maria.

D) The transaction results in $50,000 of ordinary income for Maria.

14. Benito transfers property with an adjusted basis of $65,000 and an FMV of $75,000 to a newly formed corporation in a Sec. 351 exchange. Benito receives stock with an FMV of $70,000 and a short-term note with a $5,000 FMV. Benito's basis in the stock is

A) $5,000.

B) $65,000.

C) $70,000.

D) $75,000.

15. The transferee corporation's basis in property received in a Sec. 351 exchange is

A) the FMV of the property received.

B) the transferee corporation's basis in the stock exchanged.

C) the transferor's basis for the property plus gain recognized by the transferee corporation

D) the transferor's basis for the property plus gain recognized by the transferor.