Roberta Transfers Property with a Tax Basis of $400 and a Fair

question 49

Multiple Choice

Roberta transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $350 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange?

• A)$500
• B)$400
• C)$350
• D)$250

---

Definitions:

Sales

The transactions involving the exchange of goods or services for money, representing a key revenue source for most businesses.

Indirect Costs

Expenses related to operations that are not directly tied to a specific product or service, such as overhead or administrative expenses.

Cost Of Goods Manufactured

The total production cost of goods that are completed during a specific accounting period, including materials, labor, and overhead.

Cost Of Goods Manufactured

The total expense incurred by a company to produce goods during a specific period, including labor, material, and overhead costs.