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

question 77

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 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:

Inward

Directed or moving towards the inside or center.

Clavicle

A long bone that serves as a strut between the shoulder blade and the sternum or breastbone.

Collarbone

The collarbone, also known as the clavicle, is a long bone that serves as a strut between the shoulder blade and the sternum or breastbone, playing a crucial role in the mobility and stability of the shoulder.

Salter-Harris Fracture

A classification of fractures that involve the growth plate (physis) of a bone in children and adolescents.