Individual A (A) transferred two capital assets ("CA1" and "CA2") and a personal liability to X Corporation ("X") in a transaction that qualified for Section 351. A transferred CA1, fair market value ("FMV) $500 and adjusted basis ("AB") $300 and CA2, FMV $500 and AB $600 and a personal liability in the amount of $100 to X in exchange for 100 shares of X stock (FMV $900). i. What income, gain or loss, if any, does A recognize as a result of the transaction? i. What is X Corporation's adjusted basis in CA2? Individual A (A) transferred two capital assets ("CA1" and "CA2") and a personal liability to X Corporation ("X") in a transaction that qualified for Section 351. A transferred CA1, fair market value ("FMV) $500 and adjusted basis ("AB") $300 and CA2, FMV $500 and AB $600 and a personal liability in the amount of $100 to X in exchange for 100 shares of X stock (FMV $900). i. What income, gain or loss, if any, does A recognize as a result of the transaction? i. What is X Corporation's adjusted basis in CA2