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Baula transferred equipment (with an FMV of $20,000 and adjusted basis to Paula of $15,000) and legal services (FMV of $10,000) to X Corp. for
Baula transferred equipment (with an FMV of $20,000 and adjusted basis to Paula of $15,000) and legal services (FMV of $10,000) to X Corp. for 85% of its outstanding stock. recognize due to this transfer? What is the amount of income Paula must O A. $2,500 O B. $5,000 O C. $10,000
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