Camille Transfers Property with a Tax Basis of $1,050 and a Fair

question 98

Multiple Choice

Camille transfers property with a tax basis of $1,050 and a fair market value of $1,475 to a corporation in exchange for stock with a fair market value of $1,140 and $335 incash in a transaction that qualifies for deferral under section 351. Camille also incurred selling expenses of $106. What is the amount realized by Camille in the exchange?

• A)$1,475
• B)$1,369
• C)$1,140
• D)$1,034

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Definitions:

Glycolysis

A metabolic process that breaks down glucose to produce energy in the form of ATP.

Pyruvate

Pyruvate is a key intermediate in several metabolic pathways, including glycolysis, where it can be converted into acetyl-CoA for entry into the Krebs cycle or used for gluconeogenesis.

Anaerobic Respiration

Breakdown of glucose in the absence of oxygen to produce lactic acid and two ATPs; consists of glycolysis and the reduction of pyruvic acid to lactic acid.

Aerobic Respiration

Breakdown of glucose in the presence of oxygen to produce carbon dioxide, water, and approximately 38 ATPs; includes glycolysis, the citric acid cycle, and the electron-transport chain.