Sarah Transfers Property with an $80,000 Adjusted Basis and a $100,000

question 63

Multiple Choice

Sarah transfers property with an $80,000 adjusted basis and a $100,000 FMV to Super Corporation in a Sec. 351 transaction. Sarah receives stock with an $85,000 FMV and a short-term note with a $15,000 FMV. Sarah's basis in the stock is

• A)$100,000.
• B)$95,000.
• C)$85,000.
• D)$80,000.

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Definitions:

Enhance Existing Organization

A cognitive process that involves integrating new information into already existing frameworks or structures of knowledge.

Garcia And Garcia y Robertson

Refers to John Garcia and his research, often with collaborators, on conditioned taste aversions, illustrating how some associations are easier to learn due to evolutionary predispositions.

Learning

The process of acquiring new understanding, knowledge, behaviors, skills, values, attitudes, or preferences through experience, study, or teaching.

Instinctive Drift

The tendency of an animal to revert to instinctive behaviors that interfere with a conditioned response.