Question
14. Benito transfers property with an adjusted basis of $65,000 and an FMV of $75,000 to a newly formed corporation in a Sec. 351 exchange.
14. Benito transfers property with an adjusted basis of $65,000 and an FMV of $75,000 to a newly formed corporation in a Sec. 351 exchange. Benito receives stock with an FMV of $70,000 and a short-term note with a $5,000 FMV. Benito's basis in the stock is
A) $5,000.
B) $65,000.
C) $70,000.
D) $75,000.
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Financial Accounting
Authors: Carl Warren, James M. Reeve, Philip E. Fess
8th Edition
0324025394, 978-0324025392
