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Michael transfers property to Bolden Corporation in exchange for stock. After the transfer, Michael owns 76% of the corporation. The fair market value of the property is equal to $20,000, and its adjusted basis is $16,000. Michael's share in the company is worth $32,000. What is Michael's recognized gain?
A. $32,000
B. $16,000
C. $12,000
D. $0

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