Carlos Transfers Property with a Tax Basis of $535 and a Fair

question 27

Multiple Choice

Carlos transfers property with a tax basis of $535 and a fair market value of $1,060 to a corporation in exchange for stock with a fair market value of $785 and $56 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $219 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A)$1,060
• B)$729
• C)$591
• D)$372

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Definitions:

Online Games

Video games that are either partially or primarily played through the Internet or any other computer network available.

Interpersonal Relationships

Interactions and connections between two or more people which can be emotional, social, or professional in nature.

Independent Variable

A variable in an experiment or model that is manipulated to determine its effect on a dependent variable.

Verbal Punishment

A disciplinary method involving the use of words to reprimand or criticize someone for their actions, rather than physical consequences.