Roberta Transfers Property with a Tax Basis of $400 and a Fair

question 49

Multiple Choice

Roberta transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $350 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange?

• A)$500
• B)$400
• C)$350
• D)$250

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Definitions:

Emigrants

Individuals who leave their country of origin to live permanently in another country, often in search of better living conditions or to escape conflicts.

Oregon

A state in the Pacific Northwest region of the United States known for its diverse landscapes, including forests, mountains, farms, and beaches.

Texas Revolt

The 1830s rebellion of residents of the territory of Texas—many of them American emigrants—against Mexican control of the region.

Republic of Texas

A sovereign nation in North America that existed from March 2, 1836, to February 19, 1846, before becoming a state of the United States.