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

question 33

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 aliability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A) $850.
• B) $900.
• C) $750.
• D) $800.

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