Carolyn Transfers Property with an Adjusted Basis of $50,000 and an FMV

question 58

Multiple Choice

Carolyn transfers property with an adjusted basis of $50,000 and an FMV of $60,000 in exchange for Prime Corporation stock in a Sec. 351 transaction. Carolyn's basis in the stock is

• A)$60,000.
• B)$50,000.
• C)$10,000.
• D)$0.

---

Definitions:

Stated Period

A specific, predefined duration of time mentioned in a document or agreement.

Certain Amount

A specific quantity or measure of something, often used in financial contexts or to specify quantities.

3/15 Net 60

A term of payment indicating that a buyer can deduct a certain percentage if payment is made within 15 days, otherwise the full amount is due in 60 days.

Cash Discount

A reduction in price offered to a customer for paying in cash or within a specified short payment period.