Carlos Transfers Property with a Tax Basis of $500 and a Fair

question 2

Multiple Choice

Carlos transfers property with a tax basis of $500 and a fair market value of $800 to a corporation in exchange for stock with a fair market value of $650 and $50 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

• A)$800
• B)$600
• C)$550
• D)$450

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Definitions:

Theory of Mind

The cognitive ability to understand that others have beliefs, desires, intentions, and perspectives that are different from one's own.

Autism

A developmental disorder characterized by difficulties with social interaction, communication challenges, and a tendency toward repetitive behaviors and interests.

Neurotypicality

A term describing the cognitive function of individuals who are not on the autism spectrum, often used in discussions about neurological diversity.

Implicit Personality Theories

The assumptions people make about how different types of personalities, traits, and behaviors are related to each other.