Mark tranfers equipment to XYZ Corporation. Details are:

Fair market value = $75,000 Adjusted basis = $20,000 Mortgage = $30,000

Mark receives the following XYZ Corporation:

Stock, fair market value = $45,000

Assumption of John's $30,000 mortgage

Assume the transfer meets the requirements of IRC Sec 351:

1a Mark's realized gain is

A) $25,000

B) $30,000

C) $50,000

D) $55,000

1b Mark's recognized gain is

A)$10,000

B) $25,000

C)$50,000

D)$55,000

1c On September 10, 2015, Jessica exchanges a piece of equipment for 100% of the stock in Cedar Corporation. Jessica purthased the equipment on March 31, 2010. if Jessica sells her stock on October 31, 2018, what date does she use for date of stock acquired ?

A March 31, 2010

B September 1, 2015

C September 10, 2015

D December 31, 2018

1d As an alternative to issuing debt or equity, a corporation could enter into

A a lease

B a license

C Both a and b

D Neither a of b