Carolyn Transfers Property with an Adjusted Basis of $50,000 and an FMV

question 58

Multiple Choice

Carolyn transfers property with an adjusted basis of $50,000 and an FMV of $60,000 in exchange for Prime Corporation stock in a Sec. 351 transaction. Carolyn's basis in the stock is

• A)$60,000.
• B)$50,000.
• C)$10,000.
• D)$0.

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Definitions:

Doublet

A pattern seen in NMR spectroscopy indicating two adjacent hydrogen atoms influencing a signal.

NMR

Nuclear Magnetic Resonance, a spectroscopic technique used to determine the structure of molecules.

IR

An abbreviation for infrared spectroscopy, a method for studying molecules by observing their interaction with infrared light to identify chemical bonds and functional groups.

Medium

An environment or substance in which other materials or reactions are hosted or take place, potentially affecting their properties.