Three years after Drew forms the corporation, he decides to combine his business with that of Michael. Michael contributes assets (FMV $500,000; A.B. $200,000) to the corporation for half of its stock, worth $500,000. As a result of the transfer, Michael must recognize Group of answer choices no gain or loss a $200,000 gain a $300,000 gain a $500,000 gain

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When Michael contributes assets FMV 500000 AB 200000 to the corporation for half of its s... View the full answer