Jameson Inc. transfers property with a tax basis of $600 and a fair market value of $1,000 to a corporation in exchange for stock with a fair market value of $750 and $100 cash in a transaction that qualifies for deferral under Section 351. The corporation assumed a liability of $150 on the property transferred. What is the corporation's tax basis in the property received in the exchange?
Jameson Inc. transfers property with a tax basis of $600 and a fair market value of $1,000 to a corporation in exchange for stock with a fair market value of $750 and $100 cash in a transaction that qualifies for deferral under Section 351. The corporation assumed a liability of $150 on the property transferred. What is the corporation's tax basis in the property received in the exchange?
Chapter12: S Corporations
Section: Chapter Questions
Problem 15CE
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Financial Accounting
Transcribed Image Text:Jameson Inc. transfers property with a tax basis of $600 and a fair market value
of $1,000 to a corporation in exchange for stock with a fair market value of
$750 and $100 cash in a transaction that qualifies for deferral under Section
351. The corporation assumed a liability of $150 on the property transferred.
What is the corporation's tax basis in the property received in the exchange?
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