Question 1 On January 1, 2022, Benji, Diego, and Amanda form Miami Corporation (a C Corporation) in a transaction that qualifies for Sec. 351. Benji contributes land for X$30,000 of Miami stock. Diego contributes special designer furniture purchased several years ago in exchange for Miami stock with a FMV of $25,000. The furniture has a $20,000 adjusted basis ($50,000 cost less $30,000 depreciation) and a $55,000 FMV because it is in high demand. Miami Corporation also agreed to assume Diego's $30,000 liability (acquisition business debt) on the furniture. Amanda transfers equipment for $25,000 of Miami stock. How much gain or income does Diego recognize when the corporation is formed?

On January 1, 2022, Benji, Diego, and Amanda form Miami Corporation (a C Corpdration) in a transaction that qualifies for Sec. 351 . Benji contributes land for $30,000 of Miami stock. Diego contributes special designer furmiture purchased several years ago in exchange for Miami stock with a FMV of $25,000. The furnture has a $20,000 adjusied basis ( $50,000 cost less $30,000 depreciation) and a $55,000FMV because if is in bigh demand. Mani Corporation also agreed to assume Diego' $30,000 liabilaty (acquisition busmess debf) on the fumiture. Amanda transfers equipmeat for $25,000 of Miami stock. How much gain or income does Diego recognire when the corporation is formed