23. 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.
Income tax for corporations and partnerships are examined. The gains of Green Corporation are given.