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Michelle transferred a car with an adjusted basis of $10,000 to Corner Corporation in exchange for $12,500 cash and 90% of Corner's only class of

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Michelle transferred a car with an adjusted basis of $10,000 to Corner Corporation in exchange for $12,500 cash and 90% of Corner's only class of stock outstanding (valued at $14,000). What is Michelle's recognized gain on the exchange? A. $0 B. $4,000 C. $12,500 D. $16,500

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