Question $4$

$10$ pts

Jane transfers property $($basis of $$180,000$ and fair market value of $$500,000)$ to Green Corporation for $80\%$ of its stock $($worth $$425,000)$ and a long$-$term note $($worth $$75,000)$ executed by Green Corporation and made payable to Jane. As a result of the transfer:

Jane recognizes no gain.

Jane recognizes a gain of $$270,000.$

Jane recognizes a gain of $$75,000.$

Jane recognizes a gain of $$320,000.$