John Transfers Assets with a $200,000 FMV (Basis $160,000)and $170,000

question 74

Multiple Choice

John transfers assets with a $200,000 FMV (basis $160,000) and $170,000 of business-related liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $130,000.The corporation assumes the $170,000 mortgage.The transfer qualifies under Sec.351.What is the corporation's basis in the property?

• A)$160,000
• B)$170,000
• C)$190,000
• D)$200,000

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Definitions:

Employed

Refers to individuals who are currently working in a paid job or running a business.

Units

Basic quantities or measurements, such as pieces or liters, used to quantify the amount of a product or substance.

Marginal Revenue Product

The additional revenue generated by employing one more unit of input, such as labor, in the production process.

Resource

An input used in the production of goods or services, such as labor, land, capital, and technology.