Question $9$

$"$A$"$ and $"$B$"$ form $"$C Corporation", a new corporation. A contributes real

property with a fair market value of $$50,000$ and an adjusted basis of $$25,000,$

in exchange for $50\%$ of the stock of $C$ corporation. A has owned the real

property contributed for two years. B contributes $$35,000$ of Cash and

contributes services valued at $$15,000$ and in return receives $50\%$ of the stock

of C Corporation.

What is the basis to C Corporation in real property received from A$?$

None of the answers listed are correct

$$0$

$$25,000$

$$50,000$