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In a section 3 5 1 transaction, Sandy contributes his apartment building to a new corporation in return for stock. He has a basis in

In a section 351 transaction, Sandy contributes his apartment building to a new corporation in return for stock. He has a basis in the building of $40,000 and its value is $100,000. If Sandy receives stock worth $100,000, he will recognize gain of:
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$60,000
$100,000
$40,000
$0

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