Aaron transferred property with a basis of $50,000 and a fair market value of $75,000 plus services worth $25,000 to BK Corporation for stock of BK valued at $100,000. Immediately after the exchange, Aaron owned 80% of the shares of BK's only class of stock. 

What must Aaron recognize as a result of this transaction?

Answer rating: 100% (QA)

In this transaction Aaron transferred property and services to BK Corporation in exchange for stock ... View the full answer