Ralph Transfers Property with an Adjusted Basis of $65,000 and an FMV

question 29

Multiple Choice

Ralph transfers property with an adjusted basis of $65,000 and an FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short-term note having a $10,000 FMV. Ralph's basis in the stock is

• A)$75,000.
• B)$70,000.
• C)$65,000.
• D)$60,000.

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Definitions:

Antisocial Personality Disorder

A personality disorder in which the person (usually a man) exhibits a lack of conscience for wrongdoing, even toward friends and family members. May be aggressive and ruthless or a clever con artist.

Obsessive Thoughts

Obsessive thoughts are persistent, unwanted thoughts that cause distress or anxiety and are often a component of OCD.

Compulsive Behaviors

Behaviors that an individual feels compelled to perform repeatedly, often as a way of reducing anxiety or distress, which may interfere with daily functioning.

Anxiety

Anxiety is an emotion characterized by feelings of tension, worried thoughts, and physical changes like increased blood pressure, stemming from anticipation of future trouble or misfortune.