Camille transfers property with a tax basis of $1,050 and a fair market value of $1,475 to a corporation in exchange for stock with a fair market value of $1,140 and $335 incash in a transaction that qualifies for deferral under section 351. Camille also incurred selling expenses of $106. What is the amount realized by Camille in the exchange?
A)$1,475
B)$1,369
C)$1,140
D)$1,034

Question

Quizplus · Accepted Answer

The amount realized is the fair market value of the stock received plus the cash received minus any selling expenses incurred. Therefore, the amount realized by Camille is $1,140 + $335 - $106 = $1,369.

Camille Transfers Property with a Tax Basis of $1,050 and a Fair