Part 1: Tax Impacts to Corporation and Shareholder of a IRC Sec.

Part 1: Tax Impacts to Corporation and Shareholder of a IRC Sec. 351 Contribution

Taxpayer A transfers property with an adjusted basis of $10,000 and a fair market value of $50,000 to a controlled corporation in exchange for stock worth $30,000, cash of $10,000, and other property with a fair market value of $10,000. What, if any gain will be recognized?