Roy Transfers Property with a Tax Basis of $800 and a Fair

question 38

Multiple Choice

Roy transfers property with a tax basis of $800 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $400 and $50 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $50 on the property transferred. What is Roy's tax basis in the stock received in the exchange?

• A) $800
• B) $750
• C) $700
• D) $500

Comprehend the dynamics of land management and distribution policies in the development of the Western territories.

Recognize the impact of economic demands such as timber and gold rushes on Western expansion.

Appreciate the cultural and material preparations of migrants moving to the West.

Analyze the relationship between Native Americans and the federal government, including policies of assimilation and removal.

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Definitions:

Skeletal Muscle

A type of striated muscle tissue that is attached to bones and is involved in the movement of the skeleton and voluntary movements.

Hollow Organs

Organs within the body that have a cavity, such as the stomach, intestine, and bladder.

Smooth

Pertaining to smooth muscle, an involuntary non-striated muscle found within the walls of organs and structures such as the digestive tract, blood vessels, and urinary bladder.

Cardiac

Pertaining to the heart and its functions or diseases.