Casey Transfers Property with a Tax Basis of $2,000 and a Fair

question 53

Multiple Choice

Casey transfers property with a tax basis of $2,000 and a fair market value of $5,000 to a corporation in exchange for stock with a fair market value of $4,000 and $400 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $600 on the property transferred. Casey also incurred selling expenses of $300. What is the amount realized by Casey in the exchange?

• A)$5,000
• B)$4,700
• C)$4,600
• D)$4,200

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Definitions:

Facilitation And Support

Involves providing assistance or resources to enable a person or group to achieve a task more efficiently and effectively.

Encouragement And Training

Providing support and educational opportunities to enhance skills, knowledge, and motivation.

Performance Pressures

The stress and strain individuals or organizations face to meet or exceed a set of established standards or expectations.

Multicultural Organization

An organization that recognizes, respects, and incorporates a variety of cultural expressions and practices in its operations.