John Transfers Assets with a $200,000 FMV (Basis $160,000)and $170,000

question 88

Multiple Choice

John transfers assets with a $200,000 FMV (basis $160,000) and $170,000 of liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $130,000.The corporation assumes the $170,000 mortgage.The transfer qualifies under Sec.351.What is the corporation's basis in the property?

• A)$160,000
• B)$170,000
• C)$190,000
• D)$200,000

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Definitions:

Optimistic Explanatory Style

The tendency to attribute positive events to personal, permanent, and pervasive causes, and negative events to external, temporary, and specific ones.

Medical Procedures

Standardized actions performed by healthcare professionals to diagnose, treat, or prevent health conditions.

Pessimistic Explanatory Style

The tendency to explain negative events as being pervasive, personal, and permanent, often leading to feelings of helplessness.

Recover

The process of returning to a normal state of health, mind, or strength after experiencing illness, trauma, or disruption.