Rachelle Transfers Property with a Tax Basis of $800 and a Fair

question 93

Multiple Choice

Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 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 Rachelle's tax basis in the stock received in the exchange?

• A) $900
• B) $850
• C) $750
• D) $700

---

Definitions:

Dorsal Recumbent

A position where an individual lies on their back, with legs bent and knees apart, often used in medical examinations.

General Physical Examinations

Routine health check-ups that assess the overall well-being of a person through various tests and observations.

Baseline Values

Initial measurements or data points used as a reference for future comparisons in studies or medical evaluations.

Supine

A position of lying on the back with the face up, often used in medical examinations.