Daniel Transfers Land with a $92,000 Adjusted Basis and a $100,000

question 81

Multiple Choice

Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec.351 transfer.Immediately after the transfer,Daniel owns 100% of the corporation-stock with a FMV of $15,000.In addition,$85,000 of business-related liabilities are assumed by the corporation with respect to the transfer.No other property is transferred.Daniel's basis in the stock is

• A)$0.
• B)$7,000.
• C)$8,000.
• D)$100,000.

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Definitions:

Written Document

A piece of written, printed, or digital matter that provides information or evidence.

Quantity of Goods

The specific amount or number of items being bought, sold, or produced.

Assignees

Parties to whom rights or properties have been legally transferred, particularly used in contexts involving contracts or estates.

Assignor

An assignor is a person or entity that transfers rights or interests in a particular property, contract, or other asset to another party, called the assignee.