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explain why C is the correct answer, show works Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property

explain why C is the correct answer, show works

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of $100,000. $50,000. $80,000. $0

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