Bertam Transfers Property with a $50,000 Mortgage,a Fair Market Value

question 38

Multiple Choice

Bertam transfers property with a $50,000 mortgage,a fair market value of $350,000,and a basis of $200,000 for stock valued at $300,000.If the corporation assumes the mortgage,what is Bertram's basis in the stock received in this qualifying Section 351 transaction?

• A)$200,000
• B)$250,000
• C)$300,000
• D)$350,000
• E)None of the above

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Definitions:

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Cost Driver

A factor that causes a change in the cost of an activity, essentially determining the level of expense incurred in producing a product or service.

Least Squares Regression

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