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:

Preconception Sperm Sorting

A technique used before conception to separate sperm cells to favor the selection of a specific gender during fertilization.

Pre-Implantation Genetic Diagnosis

A technique used to identify genetic defects within embryos created through in vitro fertilization (IVF) before pregnancy.

Gene Therapy

A medical treatment that involves modifying the genes of a person's cells to treat or prevent disease.

Sex Selection

Sex selection is the practice of using medical techniques to choose the sex of an offspring, often for cultural, social, or personal reasons.