Mario and Lupita Form a Corporation in a Transaction Coming

question 83

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. The corporation's basis in the property is

• A)$200,000.
• B)$150,000.
• C)$80,000.
• D)$130,000.

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Definitions:

Edema

A medical condition characterized by the accumulation of fluid in the body's tissues, leading to swelling.

Secondary Union

The healing of a bone fracture with the presence of a gap that fills with connective tissue before complete bone healing occurs.

Tissue Spaces

Areas within the body occupied by fluids or loose connective tissue, allowing for the movement and transportation of substances.

Granulation Tissue

New vascular tissue in granular form on an ulcer or the healing surface of a wound.