Henry Transfers Property with an Adjusted Basis of $90,000 and an FMV

question 35

Multiple Choice

Henry transfers property with an adjusted basis of $90,000 and an FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is

• A)$0.
• B)$5,000.
• C)$10,000.
• D)$20,000.

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Definitions:

Desecration

Ideologically inspired violation of a sacred site intended to inflict harm, if only symbolically, on people judged to have impure, false, or even evil beliefs and ritual practices.

Shaman

A person regarded as having access to, and influence in, the world of good and evil spirits, typically among some societies who practice shamanism.

Traditional Role

Established patterns of behavior expected of individuals in specific positions or settings within a cultural or social context.

Priest

A religious leader authorized to perform the sacred rituals of a religion, often acting as an intermediary between humans and one or more deities.