Antoine Transfers Property with a Tax Basis of $535 and a Fair

question 62

Multiple Choice

Antoine transfers property with a tax basis of $535 and a fair market value of $652 to a corporation in exchange for stock with a fair market value of $555 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $97 on the property transferred. What is Antoine's tax basis in the stock received in the exchange?

• A) $652
• B) $555
• C) $535
• D) $438

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