Discussion Question $4-4($LO$.3)$

Complete the following statements regarding whether a gain can ever be recognized in a $351$ transfer if boot is not received.

If a taxpayer transfers a liability to a corporation, the taxpayer normally is treated as $q,$ received boot. In a $351$ transaction, the normal rule of $357($a$)$ provides that the release of a liability $$ treated as money or other property received. Section $357($b$)$ treat the liability release as money received by the taxpayer. In $357($c$),$ recognized gain $$ the excess of the liability over the basis of the property transferred. Section $357($c$)$ it applies $$ of boot or realized gain or loss.