The Transferee Corporation's Basis in Property Received in a Sec

question 117

Multiple Choice

The transferee corporation's basis in property received in a Sec. 351 exchange is

• A)the FMV of the property received.
• B)the transferee corporation's basis in the stock exchanged.
• C)the transferor's basis for the property plus gain recognized by the transferor.
• D)the transferor's basis for the property plus gain recognized by the transferee corporation.

---

Definitions:

Oral Agreement

A verbal contract between parties where terms are agreed upon through spoken communication rather than in writing.

UCC

The Uniform Commercial Code, a set of laws that provide legal rules and regulations governing commercial or business dealings and transactions in the United States.

Missing Price

A situation where the cost or value of an item is not listed or known.

UCC

A wide-ranging collection of statutes, the Uniform Commercial Code, regulates commercial activities across the United States.