Millard transfers an asset having a FMV of $200,000 and an a…
Millard transfers an asset having a FMV of $200,000 and an adjusted basis of $150,000 to Fillmore Corporation in a §351 transaction. Millard receives in exchange Fillmore common stock having an FMV of $175,000 and White House Corporation common stock (a capital asset) having a FMV of $25,000 and a basis of $10,000 to Fillmore Corporation. Fillmore Corporation must recognize