Kyung formed a corporation and owns all of the stock.He contributed property with a FMV of $90,000 and a basis of $85,000,and he received $15,000 cash from the corporation.Kyung's basis in his stock is:

Question

Quizplus · Accepted Answer

Kyung's basis in his stock is calculated as his original basis in the property ($85,000) minus the cash received ($15,000), resulting in a basis of $70,000.

Kyung Formed a Corporation and Owns All of the Stock