Eileen Transfers Property Worth $200,000 (Basis of $190,000) to Goldfinch

Multiple Choice

Eileen transfers property worth $200,000 (basis of $190,000) to Goldfinch Corporation. In return, she receives 80% of the stock in Goldfinch Corporation (fair market value of $180,000) and a long-term note (fair market value of
$20,000) executed by Goldfinch and made payable to Eileen. Eileen recognizes gain on the transfer of:

A) $0.
B) $10,000.
C) $20,000.
D) $190,000.
E) None of these.