Monk, a sole proprietor, forms a C corporation and transfers property with an adjusted basis of $140,000 and fair market value of $260,000.Monk is the sole owner of the corporation. What amount of gain must Monk recognize in the year he transfers the property?

1. 120,000
2. $260,000
3. $0
4. $140,000

Based on the facts in the question #1 above, what is Monk's basis in the corporation's stock?

1. $0
2. $260,000
3. $140,000
4. $120,000

Based on the facts in question #1 above, what is the corporation's basis in the property transferred by Monk?

1. $120,000
2. $260,000
3. $0
4. $140,000

Based on the facts in question #1 above, if the property transferred was subject to a $60,000 mortgage that was assumed by the corporation, what is Monk's basis in the corporation's stock?

1. $0
2. $60,000
3. $80,000
4. $140,000