Rachelle Transfers Property with a Tax Basis of $800 and a Fair

question 64

Multiple Choice

Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 cash in a transaction that qualifies for deferral under section 351.The corporation assumed a liability of $100 on the property transferred.What is Rachelle's tax basis in the stock received in the exchange?

• A)$900.
• B)$850.
• C)$750.
• D)$700.

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Definitions:

Temperament

Temperament is the aspect of an individual's personality that is innate rather than learned, influencing their reactions and behaviors.

Child's Mind

Refers to the cognitive and emotional development stages of children, highlighting how they understand, perceive, and interact with the world.

Miniature Model

A small-scale representation or replica of an object, structure, or scene.

Series of Stages

A sequential progression through a number of phases in a particular developmental process or learning theory.