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

question 17

Multiple Choice

Amy transfers property with a tax basis of $900 and a fair market value of $600 to a corporation in exchange for stock with a fair market value of $450 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is Amy's tax basis in the stock received in the exchange?

• A) $750.
• B) $900.
• C) $450.
• D) $650.

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