Moustapha transfers a capital asset with a $20,000 adjusted basis to X Corp in a Section 351 transaction. In exchange, Moustapha receives 100 shares of Class A Common Stock with a FMV of $10,000 and 10O0 shares of Class B Common Stock with a FMV of $30,000. What is Moustapha's total basis in the Class B Common Stock?

Moustapha transfers a capital asset with a $20,000 adjusted basis to X Corp in a Section 351 transaction. In exchange, Moustapha receives 100 shares of Class A Common Stock with a FMV of $10,000 and 10O0 shares of Class B Common Stock with a FMV of $30,000. What is Moustapha's total basis in the Class B Common Stock?

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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