In a Sec351 Transfer,the Corporation Takes the Shareholder's Adjusted Basis in the in the Contributed

question 59

True/False

In a Sec.351 transfer,the corporation takes the shareholder's adjusted basis in the contributed property,regardless of whether the property's FMV is greater than or less than its adjusted basis at the date of contribution.

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Definitions:

Promissory Note

A financial document in which one party promises in writing to pay a determinate sum of money to the other, either at a fixed or determinable future time or on demand of the payee, under specific terms.

Accrued Interest

The interest that has accumulated on a debt over a period of time but has not yet been paid.

Promissory Note

A financial instrument containing a written promise by one party to pay another party a definite sum of money either on demand or at a specified future date.

Net Credit Sales

The total value of sales made on credit minus any returns or allowances.