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:

High Status

Occupying a position of superior rank, prestige, or respect within a social hierarchy.

Foot In The Door

A persuasion technique where a small request is made first to increase the likelihood of agreement to a larger request later.

Lowballing

A persuasive technique in which an initially favorable offer is made to gain agreement, but then terms are made less advantageous to the target.

Idiosyncrasy Credit

The leeway or toleration a group affords to a member with established credibility to deviate from group norms without severe sanction.