Problem $12-30($Algorithmic$)($LO$.2,3)$

In January of the current year, Wanda transferred machinery worth $$200,000($adjusted basis of $$30,000)$ to a controlled corporation, Oriole, Inc. The transfer qualified under $$351.$ Wanda had deducted $$160,000$ of depreciation on the machinery while it was used in her proprietorship. Later during the year, Oriole sells the machinery for $$190,000.$

Answer the following questions regarding the tax consequences to Wanda and to Oriole on the sale of the machinery.

a$.$ Does Wanda recognize a gain or loss of any kind on the transfer of the machinery to Oriole?

b$.$ Which taxpayers, if any, will recognize a gain as a result of the subsequent sale of the machinery by Oriole?

c$.$ What is Oriole's basis in the machinery before the sale?

$

d$.$ What is Oriole's gain from the sale?

Oriole has a gain of $ which is treated as