31) Clark and Lois formed an equal parinership three years ago. Clark contributed cash of $160,000 while Lols contributed land with a $90,000 adjusted basis and a $160,000FMV. Three years later the land is sold for $210,000. The tax results to Clark and Lois are A) $25,000 of gain to both Clark and Lois. B) $25,000 of gain to Clark and $95,000 gain to Lois. C) $60,000 of gain to both Clark and Lois. D) $25,000 of gain to Clark and $70,000 gain to Lois. 32) Ezinne transfers land with an adjusted basis of $50,000 and a FMV of $95,000 to a new business in exchange for a 50% ownership interest. The land is subject to a $60,000 mortgage which the business will assume. The business has no other liabilities outstanding. Indicate the amount of gain recognized by Ezinne due to this exchange if the building is transferred to (1) a corporation and (2) a partnership. Assume Sec. 351 is satisfied in the case of the corporation and Sec. 721 is satisfied in the case of the partnership. A) B) C) D)