Henry Transfers Property with an Adjusted Basis of $90,000 and an FMV

question 35

Multiple Choice

Henry transfers property with an adjusted basis of $90,000 and an FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is

• A)$0.
• B)$5,000.
• C)$10,000.
• D)$20,000.

---

Definitions:

Stigmatizing Attribute

A characteristic of a person that is socially devalued or discredited, leading to stigma or discrimination.

Total Self

The complete set of characteristics, values, beliefs, and abilities that make up an individual's identity.

Stigma Consciousness

The awareness of the stereotypes and negative perceptions associated with one's group, affecting behavior and self-perception.

Stereotype Threat

The situational predicament in which individuals are at risk of confirming negative stereotypes about their social group, affecting their performance and behavior.