Amy Transfers Property with a Tax Basis of $1,590 and a Fair

question 90

Multiple Choice

Amy transfers property with a tax basis of $1,590 and a fair market value of $1,080 to a corporation in exchange for stock with a fair market value of $605 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $475 on the property transferred. What is Amy's tax basis in the stock received in the exchange?

• A) $1,590
• B) $1,115
• C) $1,015
• D) $605

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Definitions:

Positions

In negotiations, positions refer to the specific outcomes or demands that a party wants to achieve.

Priorities

The things that are regarded as more important than others and need to be addressed or dealt with first.

Alternative Solutions

Different methods or strategies that can be utilized to solve a problem or achieve a desired outcome.

Group Process

The dynamics and patterns of behavior in a group, including the ways in which people interact and work together.