Henry Transfers Property with an Adjusted Basis of $95,000 and an FMV

question 113

Multiple Choice

Henry transfers property with an adjusted basis of $95,000 and an FMV of $100,000 to a newly formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $85,000 and a short-term note with a $15,000 FMV. Henry's basis in the stock is

• A)$100,000.
• B)$95,000.
• C)$90,000.
• D)$85,000.

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Definitions:

Cultural Leveling

The process by which cultures that were once distinct become increasingly similar to one another through interaction and exchange.

Homogenization

The process of making things uniform or similar by blending, mixing, or assimilating diverse elements.

Hard Rock Cafe

A chain of theme restaurants known for its collection of rock and roll memorabilia and dedication to classic American cuisine set in a music-infused environment.

Cultural Imperialism

The act of advancing and enforcing a culture, typically belonging to a politically dominant country, upon a weaker society.