Inez Transfers Property with a Tax Basis of $200 and a Fair

question 104

Multiple Choice

Inez transfers property with a tax basis of $200 and a fair market value of $300 to a corporation in exchange for stock with a fair market value of $250 in a transaction that qualifies for deferral under section 351.The corporation assumed a liability of $50 on the property transferred.What is the corporation's tax basis in the property received in the exchange?

• A)$150.
• B)$200.
• C)$250.
• D)$300.

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Definitions:

Joint

A point where two or more bones meet in the body, allowing for movement and support.

Cavity

An empty or unfilled space within a solid object or body, often referring to holes in teeth caused by decay.

Contusion

A bruise resulting from blunt trauma, leading to bleeding under the skin without breaking the skin.

Bones

The stiff structures that make up a portion of the internal skeleton in vertebrates, offering support, safeguarding, and assisting in mobility.