Exercise 18-1 (Algorithmic) (LO. 4) Roscoe contributes a personal use asset, adjusted basis $58,800 and fair market value $105,840, to a new business in which he is an owner. Determine Roscoe's recognized gain on the transfer and the basis of the asset to the business if the new operation is a: If the answer is zero enter 'O'. a. Sole proprietorship. Does Roscoe recognize a gain or loss? No gain or loss Amount if gain or loss recognized: $ The sole proprietorship's basis for the asset is $ b. Partnership in which Roscoe holds a 30% interest. Does Roscoe recognize a gain or loss? No gain or loss Amount if gain or loss recognized: $ The partnership's basis for the asset is $ C. Corporation in which Roscoe holds a 70% interest and all shareholders contrib- ute assets for stock in the transaction. Does Roscoe recognize a gain or loss? No gain or loss Amount if gain or loss recognized: $ The corporation's basis for the asset is $ Feedback Check My Work Under the conduit concept, the entity is viewed as merely an extension of the ow entity is regarded as being separate and distinct from its owners