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

question 99

Multiple Choice

Roy transfers property with a tax basis of $800 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $400 and $50 cash in a transaction that qualifies for deferral under section 351.The corporation assumed a liability of $50 on the property transferred.What is Roy's tax basis in the stock received in the exchange?

• A)$800.
• B)$750.
• C)$700.
• D)$500.

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Definitions:

Candy Dispensers

Devices or machines designed to release candy, often operated by coins or digitally, found in various public spaces or retail environments.

Sour Taste

A basic taste sensation perceived by the tastebuds, typically caused by acidic substances like lemon or vinegar.

Sugar Coating

The practice of presenting information in a more favorable light to make it more palatable or acceptable.

Point-Of-Purchase

The location or environment within a retail space where the actual purchase decision is made, often enhanced by displays or advertisements.