Inez Transfers Property with a Tax Basis of $200 and a Fair

question 104

Multiple Choice

Inez transfers property with a tax basis of $200 and a fair market value of $300 to a corporation in exchange for stock with a fair market value of $250 in a transaction that qualifies for deferral under section 351.The corporation assumed a liability of $50 on the property transferred.What is the corporation's tax basis in the property received in the exchange?

• A)$150.
• B)$200.
• C)$250.
• D)$300.

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Definitions:

Sensate Focus

A therapeutic technique used in sex therapy involving a series of exercises designed to build intimacy and reduce performance anxiety by focusing on touch and sensation.

Nondemand Pleasuring

A therapy technique encouraging partners in a sexual relationship to explore physical intimacy and pleasure without the pressure of specific performance outcomes.

Sensate Focus

A technique used in sex therapy involving a series of exercises designed to build intimacy and reduce performance anxiety by focusing on touch and sensation without sexual intercourse.

Genitals

The external and internal organs of reproduction, responsible for sexual function and procreation.