As part of a transaction that qualifies under Section 351, Ann transfers property with a tax basis of $95,000 and a market value of $125,000 to Acme Corporation in exchange for Acme stock and $7,000 in cash. Acme also assumes a liability of $14,000 that is attached to the property transferred. What is Acme's tax basis in the property received in the exchange? $88,000 $95,000 $102,000 $116,000
As part of a transaction that qualifies under Section 351, Ann transfers property with a tax basis of $95,000 and a market value of $125,000 to Acme Corporation in exchange for Acme stock and $7,000 in cash. Acme also assumes a liability of $14,000 that is attached to the property transferred. What is Acme's tax basis in the property received in the exchange? $88,000 $95,000 $102,000 $116,000
Chapter21: Partnerships
Section: Chapter Questions
Problem 29P
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Transcribed Image Text:As part of a transaction that qualifies under Section 351, Ann transfers property with a tax
basis of $95,000 and a market value of $125,000 to Acme Corporation in exchange for Acme
stock and $7,000 in cash. Acme also assumes a liability of $14,000 that is attached to the
property transferred. What is Acme's tax basis in the property received in the exchange?
$88,000
$95,000
$102,000
$116,000
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