Benedict Transfers Land with a FMV of $900,000 to a Newly-Formed

question 38

Multiple Choice

Benedict transfers land with a FMV of $900,000 to a newly-formed corporation in exchange for all of the stock.The land has a basis of $500,000 and debt of $300,000.The basis of the land,in the hands of the corporation is:

• A)$300,000.
• B)$400,000.
• C)$500,000.
• D)$900,000.

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