7. Objective Short Answer 10. Taxpayer T, an individual, formed C Corporation on January 1, 2021. On that date T transferred a capital asset with a fair market value ("FMV") of $450,000 and an adjusted basis of $110,000 to C. The capital asset was subject to a liability of $100,000 which was incurred on the purchase of T. In addition, on that date T also took out a personal loan from Bank ("B") of $50,000. T used the $50,000 to take a vacation. T also transferred this $50,000 liability to Con January 1, 2021. In exchange for the capital asset and the two liabilities, T received 30 shares of stock with a FMV of $1,000 per share. The exchange qualified for IRC Section 351. What income, gain or loss, if any, does T recognize as a result of the transaction?

Objective Short Answer 10. Taxpayer T, an individual, formed C Corporation on January 1,2021. On that date T transferred a capital asset with a fair market value ("FMV") of $450,000 and an adjusted basis of $110,000 to C. The capital asset was subject to a liability of $100,000 which was incurred on the purchase of T. In addition, on that date T also took out a personal loan from Bank ("B") of $50,000. T used the $50,000 to take a vacation. T also transferred this $50,000 liability to C on January 1, 2021. In exchange for the capital asset and the two liabilities. T received 30 shares of stock with a FMV of \$1,000 per share. The exchange qualified for IRC Section 351. What income, gain or loss, if any, does T recognize as a result of the transaction