Ashley Transfers Property with a Tax Basis of $7,430 and a Fair

question 12

Multiple Choice

Ashley transfers property with a tax basis of $7,430 and a fair market value of $4,985 to a corporation in exchange for stock with a fair market value of $2,445 and $1,130 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,410 on the property transferred. What is Ashley's tax basis in the stock received in the exchange?

• A)$7,430
• B)$4,890
• C)$4,985
• D)$2,445

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Categorization

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