10-

Roberta transfers property with a tax basis of $460 and a fair market value of $501 to a corporation in exchange for stock with a fair market value of $394 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $107 on the property transferred. What is the amount realized by Roberta in the exchange?

Multiple Choice

• $460

• $394

• $501

• $251