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

question 67

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 section 351. The corporation assumed a liability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A)$900
• B)$850
• C)$800
• D)$750

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Definitions:

Type A Personality

The Type A personality is characterized by being highly competitive and highly focused on work with few interests outside of work.

Dysfunctional Behavior

Actions by individuals within organizations that are detrimental to the organization's goals or to the well-being of its employees.

Hardiness

A personality trait characterized by resilience and the ability to cope with stress and adversity effectively.

Hardiness

The personal quality of being able to endure difficult conditions; resilience in facing stress or adversity.