Two investors A and B formed a new corporation. A contributed property with a fair market value of $50,000 (basis of $43,000) in exchange for 60% of the company stock and cash worth $14,000. B contributed $24,000 cash in exchange for the other 40% of the stock. Use the information to answer the following four questions.

A’s recognized gain is

		$0
		$7,000
		$12,000
		$14,000
		None of the above

A's the basis in the stock received should be?

		$50,000
		$36,000
		$28,000
		$22,000
		None of the above

B's basis in the stock received should be?

		$50,000
		$36,000
		$28,000
		$24,000
		None of the above

The basis of property (contributed by A) to the corporation is?

		$0
		$24,000
		$28,000
		$36,000
		None of the above