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

question 33

Multiple Choice

Ashley transfers property with a tax basis of $5,000 and a fair market value of $3,000 to a corporation in exchange for stock with a fair market value of $2,000 and $500 cash in a transaction that qualifies for deferral under section 351.The corporation assumed a liability of $500 on the property transferred.What is Ashley's tax basis in the stock received in the exchange?

• A)$5,000.
• B)$4,000.
• C)$3,000.
• D)$2,000.

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Definitions:

Mean

The central value of a dataset, calculated as the sum of all the numbers divided by the count of numbers in the dataset.

Variability

The extent to which data points in a statistical distribution or data set diverge from the average or mean, indicating the dispersion in the dataset.

Mean

The arithmetic average of a set of numbers, found by dividing the sum of all numbers in the set by the count of numbers.

Qualitative Variables

Variables that describe or categorize attributes or characteristics that are not numerical but can be observed qualitatively.