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. 16. The transferor's holding period for any stock received in exchange for a capital asset under a tax free Sect.351(a) exchange A) begins on the day after the exchange. B) includes the holding period for the property transferred. C) begins on the day of the exchange. D) none of the above 17. Diana forms Sun Corporation by contributing equipment, which has a basis of $62,500 and an FMV of $50,000 in exchange for Sun stock. Tomas also contributes $10,000 in cash. If the transaction meets the Sec. 351 control and ownership tests, what are the tax consequences to Diana? A) She recognizes a $10,000 loss. B) She recognizes a $2,500 gain and a $10,000 loss. C) She recognizes a $12,500 loss. D) She recognizes neither a gain nor a loss