Ralph transfers property with an adjusted basis of $65,000 and an FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short-term note having a $10,000 FMV. Ralph's basis in the stock is
A)$75,000.
B)$70,000.
C)$65,000.
D)$60,000.

Question

Quizplus · Accepted Answer

The Answer of Ralph transfers property with an adjusted basis of $65,000 and an FMV of $70,000 to Lake Corporation in a Sec. 351 transaction. Ralph receives stock worth $60,000 and a short-term note having a $10,000 FMV. Ralph's basis in the stock is
A)$75,000.
B)$70,000.
C)$65,000.
D)$60,000.

Ralph Transfers Property with an Adjusted Basis of $65,000 and an FMV