Rachelle Transfers Property with a Tax Basis of $800 and a Fair

question 95

Multiple Choice

Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 in cash in a transaction that qualifies for deferral under §351. The corporation assumed a liability of $100 on the property transferred. What is Rachelle's tax basis in the stock received in the exchange?

• A)$900
• B)$850
• C)$750
• D)$700

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Definitions:

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