Ron Transfers Assets with a $100,000 FMV (Basis $60,000)and $70,000

question 12

Multiple Choice

Ron transfers assets with a $100,000 FMV (basis $60,000) and $70,000 of business-related liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $30,000.The corporation assumes the $70,000 mortgage.The transfer qualifies under Sec.351.What is the adjusted basis of the stock received?

• A)$0
• B)$30,000
• C)$60,000
• D)$70,000

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