QUESTION 13 In a Section 351 exchange, Max transfers property to his corporation worth $30,000. His basis in it was $8,000, and it was subject to $11,000 of debt. In exchange he received $19,000 of stock in the corporation. How much gain, if any, will Max recognize on the exchange? Zero, 0 $3,000. $11,000. $22,000. QUESTION 14 In a Section 351 exchange, if a shareholder receives boot in a form other than cash (for example, a necklace), his basis in the boot will be equal to the basis he had in the property he transferred into the corporation. True False