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Fran transfers real property and a mortgage to a corporation in exchange for stock. Fran is in control of the corporation immediately after the transfer.
Fran transfers real property and a mortgage to a corporation in exchange for stock. Fran is in control of the corporation immediately after the transfer. The real property has a fair market value of $500,000, and the mortgage transferred to the corporation is $350,000. Fran has an adjusted basis in the real property of $300,000. What is the amount of income required to be recognized by Fran, if any
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