Henry transfers property with an adjusted basis of​ $95,000 and an FMV of​ $100,000 to a newly formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of​ $85,000 and a​ short-term note with a​ $15,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Henry transfers property with an adjusted basis of​ $95,000 and an FMV of​ $100,000 to a newly formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of​ $85,000 and a​ short-term note with a​ $15,000 FMV.​ Henry's basis in the stock is

 

A.

​$90,000.

 

B.

​$85,000.

 

C.

​$100,000.

 

D.

​$95,000.

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