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:

Biological Barriers

Structures and mechanisms that protect organisms from pathogens, toxins, and other external threats.

Energetic Barriers

The energy obstacles that must be overcome for a chemical reaction to proceed, related to the activation energy of the reaction.

Postzygotic Barriers

Reproductive barriers that occur after fertilization, preventing successful development, survival, or reproduction of hybrid offspring.

Flicker Hybrid Zone

A hypothetical or unverified term in biology; potentially refers to a region where closely related species with marginal differences, akin to light flickers, meet and hybridize.