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Paul transfers an asset having an FMV of $150,000 and an adjusted basis of $100,000 to Nuha Corporation in a Sec. 351 transaction. Paul receives
Paul transfers an asset having an FMV of $150,000 and an adjusted basis of $100,000 to Nuha Corporation in a Sec. 351 transaction. Paul receives in exchange Nuha common stock having an FMV of $125,000 and Marina Corporation common stock (a capital asset) having an FMV of $25,000 and a basis of $15,000 to Nuha Corporation. Nuha Corporation must recognize
A) no gain.
B) a $10,000 capital gain.
C) a $25,000 capital gain.
D) a $50,000 capital gain.
Please provide an explanation, thank you!
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