Sarah Transfers Property with an $80,000 Adjusted Basis and a $100,000

question 63

Multiple Choice

Sarah transfers property with an $80,000 adjusted basis and a $100,000 FMV to Super Corporation in a Sec. 351 transaction. Sarah receives stock with an $85,000 FMV and a short-term note with a $15,000 FMV. Sarah's basis in the stock is

• A)$100,000.
• B)$95,000.
• C)$85,000.
• D)$80,000.

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Definitions:

Ethics

Principles and standards governing the conduct of individuals or organizations, often reflecting societal values of right and wrong.

Disagree

A situation where two or more parties have differing opinions, perspectives, or choices.

Bargaining Environment

The setting, conditions, and circumstances that influence the dynamics and outcomes of negotiation processes.

Omission

The act of leaving out or excluding something, either intentionally or accidentally.