In a tranfer that qualified under sec. 351, George transferred equipment worth $750,000 (adjusted basis $400,000, depreciation recapture potential $75,000). The equipment was subject to a $150,000 loan, which the transferee corporation assumed as part of this transaction. In exchange, George received (1) CS of the transferee corporation worth $425,000, (2) promissory notes of the transferee corporation worth $100,000 and (3) cash of $75,000 (i.e., total consideration $500,000, with loan assumption included). Answer each question below, which relate to this transfer by George.

- A. B. C. D. E. F. G. H. I.	Determine the gain or lossrealizedby George on this transaction.
- A. B. C. D. E. F. G. H. I.	Determine the gain or lossrecognizedby George on this transaction.
- A. B. C. D. E. F. G. H. I.	Determine the basis that George will assign to the transferee corporation CS received in this transaction.
- A. B. C. D. E. F. G. H. I.	Determine the basis that George will assign to the Promissory Notes received in this transaction.

A.	None of the other answers is correct
B.	$400,000
C.	$250,000
D.	$75,000
E.	$175,000
F.	$350,000
G.	$100,000
H.	$100,000
I.	$150,000