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

question 2128

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

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Meaningful Activities

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Basic Mathematical Skills

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Vygotsky's Zone

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Reciprocal Teaching

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