Antoine Transfers Property with a Tax Basis of $500 and a Fair

question 91

Multiple Choice

Antoine transfers property with a tax basis of $500 and a fair market value of $600 to a corporation in exchange for stock with a fair market value of $550 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $50 on the property transferred. What is Antoine's tax basis in the stock received in the exchange?

• A)$600
• B)$550
• C)$500
• D)$450