Cherie Transfers Two Assets to a Newly-Created Corporation

Multiple Choice

Cherie transfers two assets to a newly-created corporation. The first asset has an adjusted basis of $40,000 and an FMV of $50,000. The second asset has an adjusted basis of $35,000 and an FMV of $25,000. Cherie receives stock with an FMV of $66,000 and $9,000 cash. Cherie must recognize a gain of

A) $10,000.
B) $6,000.
C) $5,000.
D) $4,000.