Sybil Transfers Property with a Tax Basis of $5,000 and a Fair

question 5

Multiple Choice

Sybil transfers property with a tax basis of $5,000 and a fair market value of $6,000 to a corporation in exchange for stock with a fair market value of $3,000 and $2,000 in cash in a transaction that qualifies for deferral under §351. The corporation assumed a liability of $1,000 on the property transferred. What is Sybil's tax basis in the stock received in the exchange?

• A)$6,000
• B)$5,000
• C)$4,000
• D)$3,000

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Definitions:

Voluntary Euthanasia

A form of euthanasia where a competent individual makes a voluntary and conscious decision to end their life, often due to unbearable suffering from a terminal illness.

Permanent Loss

An irreversible state of deprivation or the inability to regain a certain function, status, or item.

Consciousness

The state of being aware of and able to think about one's own existence, sensations, thoughts, and environment.

Higher-Brain

A concept focusing on the critical functions of the cerebral cortex, especially in discussions about brain death, consciousness, and criteria for determining death.