Answer:
A. $35000
Explanation:
The computation of the amount of gain that recognized is shown below:
= Value of the building adjusted + cash contributed - building liability + 50% shares on debt
= $55,000 + $10,000 - $60,000 + $60,000 × 50%
= $55,000 + $10,000 - $60,000 + $30,000
= $35,000
Hence, the amount of gain that recognized is $35,000
Therefore the correct option is A.
We simply applied the above formula so that the correct value could come
And, the same is to be considered
