Daniel Transfers Land with a $92,000 Adjusted Basis and a $100,000

question 6

Multiple Choice

Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec.351 transfer.Immediately after the transfer,Daniel owns 100% of the corporation-stock with a FMV of $15,000.In addition,$85,000 of liabilities are assumed by the corporation with respect to the transfer.No other property is transferred.Daniel's basis in the stock is

• A)$0.
• B)$7,000.
• C)$8,000.
• D)$100,000.

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Definitions:

Election of 1942

A midterm election in the United States held during World War II, which saw the Democratic Party losing seats to the Republicans in Congress.

Civil Rights

The rights of citizens to political and social freedom and equality, often associated with movements to end discrimination and ensure equal protection under the law.

World War II

A global conflict that lasted from 1939 to 1945, involving most of the world's nations including all the great powers, eventually forming two opposing military alliances: the Allies and the Axis.

Holocaust

The systematic, state-sponsored persecution and murder of six million Jews and millions of others by the Nazi regime and its collaborators during World War II.