Mario and Lupita Form a Corporation in a Transaction Coming

question 108

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one- half of the stock. The property has an $80,000 mortgage, which the corporation assumes. The corporation's basis in the property is

• A) $80,000.
• B) $200,000.
• C) $130,000.
• D) $150,000.

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Definitions:

Flexor Carpi Ulnaris

A muscle of the forearm that acts to flex and adduct (move towards the body) the wrist.

Flexor Carpi Radialis

A muscle of the forearm that acts to flex and abduct the hand.

Extensor Carpi Radialis Brevis

A muscle in the forearm that assists in extending and abducting the wrist.

Extensor Carpi Radialis Longus

A muscle in the forearm that extends and abducts the wrist, playing a key role in hand movements.