Amy Transfers Property with a Tax Basis of $900 and a Fair

question 46

Multiple Choice

Amy transfers property with a tax basis of $900 and a fair market value of $600 to a corporation in exchange for stock with a fair market value of $450 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is Amy's tax basis in the stock received in the exchange?

• A)$900
• B)$750
• C)$650
• D)$450

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Definitions:

Ethical Relativism

The belief that moral standards vary between individuals, cultures, or situations and that there are no absolute universal moral standards.

Self-Preservation

The protection of oneself from harm or destruction, often considered a basic instinct in humans and animals.

Situational Ethics

is an ethical framework suggesting that the rightness or wrongness of an action depends on the specific context, rather than on universal moral laws.

Ethical Relativism

The belief that moral principles are not absolute but vary with cultural, societal, or personal circumstances.