Tristan Transfers Property with a Tax Basis of $1,015 and a Fair

question 30

Multiple Choice

Tristan transfers property with a tax basis of $1,015 and a fair market value of $1,520 to a corporation in exchange for stock with a fair market value of $1,015 and $378 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $127 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A)$1,520
• B)$1,393
• C)$1,142
• D)$1,015

---

Definitions:

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Wedding Dresses

Specialized attire worn by brides during wedding ceremonies, varying widely in style, color, and design according to cultural and personal preferences.

Markdowns

Reductions from the original selling price of goods, often used to clear inventory or stimulate sales.

Everyday Low Pricing

A pricing strategy where companies consistently offer products at low prices rather than relying on sales or discounts.