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

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Carlos transfers property with a tax basis of $500 and a fair market value of $800 to a corporation in exchange for stock with a fair market value of $650 and $50 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is the corporation's tax basis in the property received in the exchange?


Definitions:

Ionic Bond

Chemical bond formed because of the attraction of two oppositely charged ions, such as by the loaning of one or more electrons from one ion to another.

Periodic Table

A tabular arrangement of the chemical elements, organized by their atomic number, electron configuration, and recurring chemical properties.

Electronegativity

A chemical property that describes the ability of an atom to attract electrons towards itself in a chemical bond.

Atomic Number

The number of protons in an atom.

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