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Question 3: Mary transferred land with an adjusted basis to her of $21,000 and a...

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Accounting

Question 3: Mary transferred land with an adjusted basis to her of $21,000 and a fair market value of $57,000 to Wine Corporation in exchange for 100% of Wine Corporation's only class of stock. The land was subject to a liability of $28,000, which Wine assumed for legitimate business purposes. The fair market value of Wine's stock at the time of the transfer was. $31,000. What is the amount of Mary's recognized gain?
a) $29,000
b) $7,000
c) $26,000
d) $10,000
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