Rachelle Transfers Property with a Tax Basis of $800 and a Fair

question 82

Multiple Choice

Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 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 Rachelle's tax basis in the stockreceived in the exchange?

• A) $850.
• B) $750.
• C) $700.
• D) $900.

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Definitions:

Subconscious Mind

The part of the mind that is not currently in focal awareness but influences thoughts, feelings, and actions.

Temperament

The aspects of an individual's personality, such as introversion or extroversion, that are considered to be innate rather than learned.

Perceived Injustice

The feeling or belief that one has been treated unfairly or has experienced unfairness in a particular situation.

Management

The process of dealing with or controlling things or people, often within organizations, including planning, directing, organizing, and controlling resources to achieve goals.