Henry Transfers Property with an Adjusted Basis of $95,000 and an FMV

question 113

Multiple Choice

Henry transfers property with an adjusted basis of $95,000 and an FMV of $100,000 to a newly formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $85,000 and a short-term note with a $15,000 FMV. Henry's basis in the stock is

• A)$100,000.
• B)$95,000.
• C)$90,000.
• D)$85,000.

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Definitions:

Syncretic

Pertaining to the combination of different forms of belief or practice.

Indigenous

The original inhabitants of a region or country, often possessing unique cultural, linguistic, and historical traditions distinct from those of colonizing or migrating populations.

Foreign Beliefs

Ideas, ideologies, or religious convictions that originate from or are associated with cultures or countries different from one's own.