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:

Loyalty

A strong feeling of support or allegiance towards someone or something, often based on shared values or experiences.

Categories

Classifications or groups based on shared characteristics or qualities, used to organize complex information or objects.

Emotions

Complex psychological states that involve an experiential, physiological, and behavioral response to a stimulus.

Job Sharing

An employment arrangement where two or more individuals share the responsibilities, hours, and benefits of a single full-time job.