Camille transfers property with a tax basis of $1,140 and a fair market value of $1,340 to a corporation in exchange for stock with a fair market value of $1,270 and $70 incash in a transaction that qualifies for deferral under section 351. Camille also incurred selling expenses of $133. What is the amount realized by Camille in the exchange?

Question

Quizplus · Accepted Answer

The amount realized is the fair market value of the stock received plus any cash received minus any selling expenses incurred. Therefore, the amount realized by Camille is $1,270 (fair market value of stock) + $70 (cash received) - $133 (selling expenses) = $1,207.

Camille Transfers Property with a Tax Basis of $1,140 and a Fair