Roberta transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $350 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange?
A)$500
B)$400
C)$350
D)$250

Question

Quizplus · Accepted Answer

The amount realized by Roberta in the exchange is the fair market value of the stock received ($350) plus the liability assumed by the corporation ($150), totaling $500.

Roberta Transfers Property with a Tax Basis of $400 and a Fair