2. Assume the same facts as in Problem 1 except that B's land is worth $42,000 (instead of $40,000). In addition to 40 shares, he receives $2,000 in cash from ABC Corporation. Required: A. What is B's recognized gain? Sec. 351(b). B. , what basis does B have in his stock? C. What basis will ABC Corporation have in the land? 2. Assume the same facts as in Problem 1 except that B's land is worth $42,000 (instead of $40,000). In addition to 40 shares, he receives $2,000 in cash from ABC Corporation. Required: A. What is B's recognized gain? Sec. 351(b). B. , what basis does B have in his stock? C. What basis will ABC Corporation have in the land