John Transfers Assets with a $200,000 FMV (Basis $160,000)and $170,000

question 74

Multiple Choice

John transfers assets with a $200,000 FMV (basis $160,000) and $170,000 of business-related liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $130,000.The corporation assumes the $170,000 mortgage.The transfer qualifies under Sec.351.What is the corporation's basis in the property?

• A)$160,000
• B)$170,000
• C)$190,000
• D)$200,000

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