Inez Transfers Property with a Tax Basis of $200 and a Fair

question 92

Multiple Choice

Inez transfers property with a tax basis of $200 and a fair market value of $300 to a corporation in exchange for stock with a fair market value of $250 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $50 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A) $300.
• B) $250.
• C) $150.
• D) $200.