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

question 13

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 the corporation's tax basis in the property received in the exchange?

• A)$900.
• B)$850.
• C)$800.
• D)$750.

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