Antoine Transfers Property with a Tax Basis of $500 and a Fair

question 91

Multiple Choice

Antoine transfers property with a tax basis of $500 and a fair market value of $600 to a corporation in exchange for stock with a fair market value of $550 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $50 on the property transferred. What is Antoine's tax basis in the stock received in the exchange?

• A)$600
• B)$550
• C)$500
• D)$450

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Definitions:

Evolution

The process through which species of organisms change over time through genetic variation and natural selection.

Directional Natural Selection

A process where natural selection favors one extreme phenotype over others, causing a shift in the population's genetic variance.

Shift

A change in position, direction, or tendency, often indicating a transformation in conditions or strategies.

Traits

Traits refer to distinguishable characteristics or attributes of organisms, which can be physical, such as color and size, or behavioral.