Sybil Transfers Property with a Tax Basis of $5,000 and a Fair

question 54

Multiple Choice

Sybil transfers property with a tax basis of $5,000 and a fair market value of $6,000 to a corporation in exchange for stock with a fair market value of $3,000 and $2,000 cash in a transaction that qualifies as a section 351 transfer.The corporation assumed a liability of $1,000 on the property transferred.What is Sybil's tax basis in the stock received in the exchange?

• A)$6,000.
• B)$5,000.
• C)$4,000.
• D)$3,000.

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