Provide an explanation of the correct answer and why the other choices are incorrect.

T-Mobile Wi-Fi 9:53 PM Week #5: Discussion 2) Gearty and Olinto organized The Witt Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows Property Adjusted Basis Fair Market Value % of Witt Corp. Stock Acquired Gearty Building $80,000 $164,000 60% Olinto Land $10,000 $96,000 4096 The building was subject to a $20,000 mortgage that was assumed by the Witt Corp. What amount of gain did Gearty recognize on the exchange? a. $0 b. $20,000 C. $84,000 d. $104,000 Add Reply