Rachelle Transfers Property with a Tax Basis of $800 and a Fair

question 93

Multiple Choice

Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is Rachelle's tax basis in the stock received in the exchange?

• A) $900
• B) $850
• C) $750
• D) $700

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Definitions:

Motivational Interviewing

A counseling approach that helps individuals find the motivation to make positive decisions and accomplish established goals.

Person-centered Therapy

A psychotherapeutic approach developed by Carl Rogers that emphasizes an empathetic, nonjudgmental environment, allowing clients to lead the conversation and process of therapy.

Intrinsic Motivation

Type of motivation in which a person performs an action because the act itself is rewarding or satisfying in some internal manner.

Cognitive Therapy

A form of psychotherapy that focuses on changing negative patterns of thought to improve emotional regulation and develop personal coping strategies targeting solving current problems.