Camille transfers property with a tax basis of $800 and a fair market value of $1,200 to a corporation in exchange for stock with a fair market value of $850 and $350 in a transaction that qualifies for deferral under section 351. Camille also incurred selling expenses of $100. 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 ($850) plus the cash received ($350), totaling $1,200. Selling expenses of $100 reduce the amount realized to $1,100.

Camille Transfers Property with a Tax Basis of $800 and a Fair