Eve Transfers Property (Basis of $120,000 and Fair Market Value

Multiple Choice

Eve transfers property (basis of $120,000 and fair market value of $400,000) to Green Corporation for 80% of its stock (worth $350,000) and a long-term note (worth $50,000) , executed by Green Corporation and made payable to Eve. As a result of the transfer:

A) Eve recognizes no gain.
B) Eve recognizes a gain of $230,000.
C) Eve recognizes a gain of $280,000.
D) Eve recognizes a gain of $50,000.
E) None of the above.