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As part of a transaction that qualifies for section 351 Charles contributes a building with...

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Accounting

As part of a transaction that qualifies for section 351 Charles contributes a building with a Fair market Value of $200,000(in which he has a basis of $50,000) to McCrary Corp in exchange for stock. The building was subject to a liability of $10,000 which McCrary also assumed. In addition, as part of the transaction, Charles received a piece of equipment with a fair market value of $40,000 and basis of $30,000.
Required: Assume McCrary immediately sells the building for $80,000 and that the adjusted basis at the date of sale is the same as when it was contributed. What is the recognized gain or loss that McCrary must recognize on the sale of the building?
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