Sarah Transfers Property with an $80,000 Adjusted Basis and a $100,000

question 63

Multiple Choice

Sarah transfers property with an $80,000 adjusted basis and a $100,000 FMV to Super Corporation in a Sec. 351 transaction. Sarah receives stock with an $85,000 FMV and a short-term note with a $15,000 FMV. Sarah's basis in the stock is

• A)$100,000.
• B)$95,000.
• C)$85,000.
• D)$80,000.

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Definitions:

Freshman Fifteen

The term commonly used to refer to the weight gain, typically around fifteen pounds, that some new college students experience in their first year.

Anorexia Nervosa

A disorder related to eating, marked by a profound dread of weight gain and a skewed perception of one's body, resulting in extreme limitations on food consumption.

Bulimia Nervosa

An eating disorder characterized by episodes of binge eating followed by compensatory behaviors like vomiting, fasting, or excessive exercise.

Chef

A professional cook who is usually responsible for planning menus, overseeing kitchen staff, and ensuring the quality of meals in restaurants and other dining establishments.