Tristan Transfers Property with a Tax Basis of $920 and a Fair

question 20

Multiple Choice

Tristan transfers property with a tax basis of $920 and a fair market value of $1,600 to a corporation in exchange for stock with a fair market value of $920 and $426 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $254 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A) $1,600
• B) $1,346
• C) $1,174
• D) $920

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Definitions:

Pseudostratified Epithelium

A type of epithelium that appears to be stratified but is actually a single layer of cells with nuclei at various levels, giving the illusion of a multi-layered structure.

Cartilage

A flexible skeletal tissue of vertebrates; a type of connective tissue.

Nervous Tissue

A type of animal tissue specialized for transmitting electrical and chemical signals.

Dendrite

A branched projection of a neuron that receives signals from other neurons.