Casey Transfers Property with a Tax Basis of $2,000 and a Fair

question 53

Multiple Choice

Casey transfers property with a tax basis of $2,000 and a fair market value of $5,000 to a corporation in exchange for stock with a fair market value of $4,000 and $400 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $600 on the property transferred. Casey also incurred selling expenses of $300. What is the amount realized by Casey in the exchange?

• A)$5,000
• B)$4,700
• C)$4,600
• D)$4,200

---

Definitions:

Sick Role

A sociological concept describing the expectations of behavior and rights of an individual who is ill.

Health Decisions

Choices and judgments made by individuals or healthcare providers regarding the prevention, treatment, and management of health issues.

Chronic Disease

A long-standing or persistent disease that typically progresses slowly and can be controlled but not cured.

Status of Wellness

An overall state of health and well-being, encompassing physical, mental, and social aspects.