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Frank Spanos owns 100% of the stock of Widget. Inc. He transfers a manufacturing plant worth $100,000 with a basis of $50,000 to Widget Inc.
Frank Spanos owns 100% of the stock of Widget. Inc. He transfers a manufacturing plant worth $100,000 with a basis of $50,000 to Widget Inc. in exchange for stock worth $70,000 and $30,000 in cash. Frank recognizes gain in what amount? A. $20,000 B. $30,000 C. $50,000 D. $70,000
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