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

question 61

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 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:

Objective Personality

An approach to personality assessment that uses standardized measures to evaluate personality traits without subjective judgment.

Psychopathology

The study of mental disorders, including their symptoms, etiology (causes), and treatment.

Treatment Planning

The process of identifying a client's issues and determining the most effective course of therapy or intervention.

Career Counseling

A process that assists individuals in understanding themselves and the world of work in order to make career, educational, and life decisions.