Sybil Transfers Property with a Tax Basis of $5,000 and a Fair

question 54

Multiple Choice

Sybil transfers property with a tax basis of $5,000 and a fair market value of $6,000 to a corporation in exchange for stock with a fair market value of $3,000 and $2,000 cash in a transaction that qualifies as a section 351 transfer.The corporation assumed a liability of $1,000 on the property transferred.What is Sybil's tax basis in the stock received in the exchange?

• A)$6,000.
• B)$5,000.
• C)$4,000.
• D)$3,000.

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Definitions:

Dopamine

A neurotransmitter involved in many functions, including mood, sleep, learning, motivation, and reward.

Myelin Sheath

A fatty covering that surrounds and insulates nerve fibers, speeding up the transmission of nerve impulses.

Neural Impulses

Electrical impulses moving through neurons that convey data across the nervous system.

Frequency

The rate at which a repeating event occurs over a set period, often measured in cycles per second or hertz in the context of waves or vibrations.