Ralph Transfers Property with an Adjusted Basis of $65,000 and an FMV

question 29

Multiple Choice

Ralph transfers property with an adjusted basis of $65,000 and an FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short-term note having a $10,000 FMV. Ralph's basis in the stock is

• A)$75,000.
• B)$70,000.
• C)$65,000.
• D)$60,000.

---

Definitions:

Emerging Adulthood

A life stage between adolescence and full-fledged adulthood, characterized by exploration and instability in jobs, relationships, and identity.

Adolescence

A developmental transition between childhood and adulthood involving significant physical, emotional, and psychological changes.

Young Adulthood

The stage of life following adolescence, roughly between the ages of 20 and 40, characterized by the pursuit of independence, relationships, and career development.

Revolving Door

A term often used to describe a situation where people or positions are frequently replaced or changed.