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:

Assembly Lines

A manufacturing process in which parts are added to a product in a sequential manner, using conveyors or other efficient means, to create a finished product efficiently.

Robotics

The branch of technology that involves the design, construction, operation, and application of robots.

Resource Inputs

The materials, labor, and capital that are used to produce goods and services.

Organisational Outputs

The results or products that come from the functioning of an organization, including goods, services, and ideas.