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

question 67

Multiple Choice

Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 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)$900
• B)$850
• C)$800
• D)$750

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Definitions:

Trust Building

The process of developing reliability, truthfulness, and strength of relationship between individuals or groups.

Obsessive-Compulsive

Pertaining to a disorder characterized by unwanted recurrent thoughts (obsessions) and/or repetitive behaviors (compulsions) as attempts to reduce anxiety.

Antisocial

A pattern of behavior that is hostile, disruptive, or violating societal norms, often associated with antisocial personality disorder.

Schizotypal

Pertaining to or characteristic of a personality disorder marked by severe social anxiety, thought disorder, paranoid ideation, derealization, transient psychosis, and often unconventional beliefs.