Martin Contributes Property with an Adjusted Basis of $100,000 and a Fair

question 148

Multiple Choice

Martin contributes property with an adjusted basis of $100,000 and a fair market value of $140,000 to a newly formed business entity. If the entity is an S corporation and the transaction qualifies under § 351, the S corporation's basis for the property and the shareholder's basis for the stock are:
Asset Basis Stock Basis

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Definitions:

Revealed Preference

A concept in consumer theory stating that the preferences of consumers can be revealed by their purchasing habits.

Prices

The price in money anticipated, needed, or given in exchange for a commodity.

Strong Axiom

An advanced principle or rule, often within a specific field of study, that has widespread acceptance and provides a solid foundation for further developments.

Revealed Preferences

A theory in economics that infers consumer preferences based on the observation of consumer behavior and choices under constraint.