Sarah Transfers Property with an $80,000 Adjusted Basis and a $100,000

question 31

Multiple Choice

Sarah transfers property with an $80,000 adjusted basis and a $100,000 FMV to Super Corporation in a Sec. 351 transaction. Sarah receives stock with an $85,000 FMV and a short- term note with a $15,000 FMV. Sarah's basis in the stock is

• A) $80,000.
• B) $95,000.
• C) $100,000.
• D) $85,000.

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Definitions:

Federal Law

Legislation that is enacted by the national government and applies throughout the country, overriding state and local laws where there is conflict.

Public Nuisance

An act or omission that obstructs, damages, or inconveniences the rights of the community or public.

Unreasonable Manner

Acting or behaving in a way that is not sensible, fair, or rational, often leading to negative consequences or judgments.

Deadly Force

The use of force that is likely to cause, or intended to cause, death or serious bodily harm.