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:

DNA Sequences

The precise order of nucleotides within a DNA molecule, which determines the genetic information carried.

Homologous Chromosomes

Pairs of chromosomes in a diploid organism that have the same gene sequence and structure, one from each parent.

Sexually Reproducing Populations

Groups of organisms that reproduce through the exchange of genetic material between two individuals, leading to offspring with genetic variation.

New Zealand Mudsnails

A species of very small, invasive snail originating from New Zealand, known for impacting freshwater ecosystems in various parts of the world.