Chris transfers land with a basis of $40,000 to Webb Corporation in exchange for 100% of Webb's stock. At the date of the transfer, the land had a $30,000 fair market value. Absent an election by Chris, Webb's basis in the land is
A)$30,000.
B)$35,000.
C)$40,000.
D)none of the above

Question

Quizplus · Accepted Answer

The Answer of Chris transfers land with a basis of $40,000 to Webb Corporation in exchange for 100% of Webb's stock. At the date of the transfer, the land had a $30,000 fair market value. Absent an election by Chris, Webb's basis in the land is
A)$30,000.
B)$35,000.
C)$40,000.
D)none of the above

Chris Transfers Land with a Basis of $40,000 to Webb