1. LO.4 Roscoe contributes a personal use asset, adjusted basis $15,000 and fair market value $28,000, to a new business in which he is an owner. Determine Roscoe’s recognized gain on the transfer and the basis of the asset to the business if the new operation is a:

a. Sole proprietorship.

b. Partnership in which Roscoe holds a 10% interest.

c. Corporation in which Roscoe holds a 25% interest and all shareholders contribute assets for stock in the transaction.