Daniel Transfers Land with a $92,000 Adjusted Basis and a $100,000

question 81

Multiple Choice

Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec.351 transfer.Immediately after the transfer,Daniel owns 100% of the corporation-stock with a FMV of $15,000.In addition,$85,000 of business-related liabilities are assumed by the corporation with respect to the transfer.No other property is transferred.Daniel's basis in the stock is

• A)$0.
• B)$7,000.
• C)$8,000.
• D)$100,000.

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Definitions:

Voluntarily Sold

The act of willingly choosing to sell an asset or property without being forced by external circumstances.

Legal Action

The process of pursuing or defending a lawsuit in court to enforce or defend one's legal rights.

Disaffirmance

The process of rejecting or nullifying a previously agreed-upon contract, especially applicable to minors or parties lacking full capacity.

Defaming

The act of damaging someone's reputation through false or malicious statements.