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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Definitions:

Incorrectly Paired Nucleotides

Mismatches in the base pairing of DNA strands, which can result in mutations or errors in DNA replication and transcription.

DNA Replication

The process by which a cell duplicates its DNA, making two copies that each new cell will receive one when the cell divides.

Parental Strands

Refers to the original strands of DNA or RNA from which new strands are synthesized during replication.

Conservative Replication

A hypothetical model of DNA replication where the original DNA molecule is fully preserved and a completely new copy is produced.