Sam and Rebecca form Cheers, Inc. Sam transfers a building in which
his adjusted basis is $10,000. The fair market value of the
building is $95,000. Rebecca transfers property which in her hands
has been inventory, and in which her adjusted basis is $3,000. The
fair market value of the inventory is $5,000. Sam receives 95
shares of Cheers common voting stock, and Rebecca receives 5
shares of common voting stock.
Question 5. Must Sam or Rebecca recognize gain from this