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.

---

Definitions:

Symport

A type of transporter protein that moves two or more substances in the same direction across a cell membrane.

Antiport

A mechanism of membrane transport where two substances are moved in opposite directions across a cell membrane, usually by a protein transporter.

Uniport

A type of transporter in cell membranes that moves a single type of molecule in one direction across the membrane.

Embarrassment

A feeling of self-consciousness, shame, or awkwardness that occurs when private aspects of the self are exposed or when failing to meet social expectations.