Ralph Transfers Property with an Adjusted Basis of $65,000 and an FMV

question 11

Multiple Choice

Ralph transfers property with an adjusted basis of $65,000 and an FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short- term note having a $10,000 FMV. Ralph's basis in the stock is

• A) $60,000.
• B) $75,000.
• C) $65,000.
• D) $70,000.

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Definitions:

Federal Government

The national government of a federal country, which holds the authority to govern shared matters while coexisting with the governments of the individual states.

Banking System

The network of institutions that facilitate the exchange of money between savers and borrowers, including personal and commercial banking services.

Trail Of Tears

Cherokees’ own term for their forced removal, 1838–1839, from the Southeast to Indian lands (later Oklahoma); of 15,000 forced to march, 4,000 died on the way.