Kathy and Carl formed a corporation by each contributing an asset with a FMV of $50,000 for half of the stock in the corporation. Prior to the transfer, Kathy had an adjusted basis of $40,000 in her asset and Carl had an adjusted basis of $60,000 in his asset.

v. Does Kathy have any positive or negative consequences if the corporation sells Carls asset for $50,000? Quantify how much of the impact assuming the corporations marginal tax rate is 21%.