Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation in exchange for stock with a fair market value of $569 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $78 on the property transferred. What is Antoine's tax basis in the stock received in the exchange? Multiple Choice O $647 O$524 $569 $446

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation in exchange for stock with a fair market
value of $569 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $78 on the property
transferred. What is Antoine's tax basis in the stock received in the exchange?
Multiple Choice
O $647
O $524
$569
O$446.
Transcribed Image Text:Antoine transfers property with a tax basis of $524 and a fair market value of $647 to a corporation in exchange for stock with a fair market value of $569 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $78 on the property transferred. What is Antoine's tax basis in the stock received in the exchange? Multiple Choice O $647 O $524 $569 O$446.
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