Roberta Transfers Property with a Tax Basis of $400 and a Fair

question 49

Multiple Choice

Roberta transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $350 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange?

• A)$500
• B)$400
• C)$350
• D)$250

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Interest Rates

The amount charged, expressed as a percentage of principal, by a lender to a borrower for the use of assets.

Swiss Franc

The official currency of Switzerland and Liechtenstein, known for its stability and as a safe-haven currency.

Depreciate

A decrease in the value of an asset over time, often due to wear and tear or obsolescence.

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