Wendell owns 100% of the outstanding stock of Group Corporation. During the current year, Wendell transferred inventory to Group in exchange for SO additional shares of stock and $10,000 cash. The inventory has a tax basis of $50,000 and a fair market value of $56,000 at the time of the transfer. What is Group's tax bas is in the inventory received in the exchange? a. $46,000 b. $56,000 c. $50,000 d. $40,000

FINANCIAL ACCOUNTING
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Chapter1: Financial Statements And Business Decisions
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Wendell owns 100% of the outstanding stock of Group Corporation. During the current year, Wendell transferred inventory to Group in exchange for
SO additional shares of stock and $10,000 cash. The inventory has a tax basis of $50,000 and a fair market value of $56,000 at the time of the
transfer.

What is Group's tax bas is in the inventory received in the exchange?

a. $46,000
b. $56,000
c. $50,000
d. $40,000

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