Casey transfers property with a tax basis of $2,640 and a fair market value of $7,000 to a corporation in exchange for stock with a fair market value of $5,100 and $835 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,065 on the property transferred. Casey also incurred selling expenses of $547. What is the amount realized by Casey in the exchange?
A)$7,000
B)$6,453
C)$6,353
D)$5,518

Question

Quizplus · Accepted Answer

The amount realized is the sum of the fair market value of the stock received ($5,100), the cash received ($835), and the liability assumed by the corporation ($1,065), minus the selling expenses ($547). Thus, $5,100 + $835 + $1,065 - $547 = $6,453.

Casey Transfers Property with a Tax Basis of $2,640 and a Fair