Trolette contributes property with an adjusted basis of $80,000 and a fair market value of $100,000 to a newly formed business entity.If the entity is a C corporation and the transaction qualifies under § 351, the corporation's basis for the property and the shareholder's basis for the stock are: $\begin{array}{ll}\text { Asset Basis }&\text { Stock Basis }\
a.\$ 80,000 & \$ 100,000 \
b.\$ 100,000 & \$ 80,000 \
c.\$ 80,000 & \$ 80,000 \
d.\$ 100,000 & \$ 100,000
\end{array}$

Question

Trolette contributes property with an adjusted basis of $80,000 and a fair market value of $100,000 to a newly formed business entity.If the entity is a C corporation and the transaction qualifies under § 351, the corporation's basis for the property and the shareholder's basis for the stock are: ​ $\begin{array}{ll}\text { Asset Basis }&\text { Stock Basis }\
a.\$ 80,000 & \$ 100,000 \
b.\$ 100,000 & \$ 80,000 \
c.\$ 80,000 & \$ 80,000 \
d.\$ 100,000 & \$ 100,000
\end{array}$

Quizplus · Accepted Answer

The Answer of Trolette contributes property with an adjusted basis of $80,000 and a fair market value of $100,000 to a newly formed business entity.If the entity is a C corporation and the transaction qualifies under § 351, the corporation's basis for the property and the shareholder's basis for the stock are: ​ $\begin{array}{ll}\text { Asset Basis }&\text { Stock Basis }\
a.\$ 80,000 & \$ 100,000 \
b.\$ 100,000 & \$ 80,000 \
c.\$ 80,000 & \$ 80,000 \
d.\$ 100,000 & \$ 100,000
\end{array}$

Trolette Contributes Property with an Adjusted Basis of $80,000 and a Fair