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.

---

Definitions:

Beck

Aaron Beck, a prominent psychologist known for his work in cognitive therapy, particularly in relation to depression, and the development of the cognitive-behavioral therapy approach.

Ruminative Responses

The tendency to compulsively focus on the causes and consequences of one's distress rather than taking action to relieve it.

Mentally Dwelling

The act of continuously thinking about or fixating on a certain thought or problem without reaching a resolution.

Mood

A temporary state of mind or feeling.