Mario and Lupita Form a Corporation in a Transaction Coming

question 83

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. The corporation's basis in the property is

• A)$200,000.
• B)$150,000.
• C)$80,000.
• D)$130,000.

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Definitions:

Treasurer

A person responsible for managing the treasury of an organization, including its financial liquidity, investments, and risk management.

Financial Manager

A professional responsible for overseeing an organization's financial health, including planning, risk management, and reporting.

Financial Plan

A comprehensive evaluation of an individual’s or organization’s current and future financial state by using currently known variables to predict future cash flows, asset values, and withdrawal plans.

Additional Assets

New or extra resources, including property and equipment, acquired by a company to support its operations.