M Corporation Assumes a $200 Liability Attached to Property Transferred

question 79

True/False

M Corporation assumes a $200 liability attached to property transferred to it by Jane in a §351 transaction. In all cases, the assumed liability will be treated as boot received by Jane.

---

Definitions:

Negotiable Document

A legal document guaranteeing the payment of a specific amount of money, either on demand or at a set time, with the property it represents being transferable from one person to another.

Nonnegotiable Document

A legal document that cannot be transferred or assigned to another party through endorsement or delivery.

Good-faith Purchaser

An individual who buys property without knowledge of any existing claims or faults of the property, thereby gaining full legal rights.

Fair Market Value

The price at which an asset would trade in a competitive auction setting, reflecting its true economic worth.