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Byefelicia transfers property (fair market value of $30,200; adjusted basis of $21,000) to a new corporation for all of its common stock (worth $16,000) and
Byefelicia transfers property (fair market value of $30,200; adjusted basis of $21,000) to a new corporation for all of its common stock (worth $16,000) and $10,000 of cash. The corporation also assumes a $5,000 liability on the property transferred without any tax avoidance motives. Determine the amount of gain realized and recognized
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