QUESTION $1$

Eileen transfers property worth $$200,000($basis of $$170,000)$ to Goldfinch Corporation. In return, she receives $90\%$ of the stock in Goldfinch Corporation $($fair market value of

$$190,000)$ and $$10,000.$ Eileen recognizes gain on the transfer of:

a$.$ $$0$

b$.$ $$10,000$

c$.$ $$20,000$

d$.$ $$190,000$