Tristan Transfers Property with a Tax Basis of $900 and a Fair

question 119

Multiple Choice

Tristan transfers property with a tax basis of $900 and a fair market value of $1,200 to a corporation in exchange for stock with a fair market value of $900 and $200 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A)$1,200
• B)$1,100
• C)$1,000
• D)$900

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Definitions:

Transportation Costs

The expenses associated with moving goods from one location to another, including shipping fees, fuel charges, and labor.

Bill of Lading

A legal document between a shipper and a carrier detailing the type, quantity, and destination of the goods being transported.

Carrier

An entity or company that provides transportation services for goods, specializing in moving products from one location to another.

Claim

An assertion of the truth of something, typically one that is disputed or in doubt.