1-E. Amy transfers property with a tax basis of $1,180 and a fair market value of $1,035 to a corporation in exchange for stock with a fair market value of $920 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $115 on the property transferred. What is Amy's tax basis in the stock received in the exchange?

Multiple Choice

• $1,180
• $1,065
• $965
• $920

1-F. Simone transferred 100 percent of her stock in Purple Company to Plum Corporation in a Type A merger. In exchange, she received stock in Plum with a fair market value of $730,000 plus $730,000 in cash. Simone's tax basis in the Purple stock was $282,000. What amount of gain does Simone recognize in the exchange and what is her basis in the Plum stock she receives?

Multiple Choice

• $1,178,000 gain recognized and a basis in Plum stock of $1,460,000
• $1,178,000 gain recognized and a basis in Plum stock of $730,000
• $730,000 gain recognized and a basis in Plum stock of $730,000
• $730,000 gain recognized and a basis in Plum stock of $282,000

1-G. Celeste transferred 100 percent of her stock in Supply Chain Company to Marketing Corporation in a Type A merger. In exchange, she received stock in Marketing with a fair market value of $517,500 plus $517,500 in cash. Celeste's tax basis in the Supply Chain stock was $1,360,000. What amount of loss does Celeste recognize in the exchange and what is her basis in the Marketing stock she receives?

Multiple Choice

• $325,000 loss recognized and a basis in Marketing stock of $1,360,000
• No loss recognized and a basis in Marketing stock of $1,360,000
• $325,000 loss recognized and a basis in Marketing stock of $842,500
• No loss recognized and a basis in Marketing stock of $842,500

1-H. Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for-stock exchange. In exchange, he received stock in Apricot with a fair market value of $385,000. Julian's tax basis in the Lemon stock was $770,000. What amount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he receives?

Multiple Choice

• $385,000 loss recognized and a basis in Apricot stock of $385,000
• No loss recognized and a basis in Apricot stock of $770,000
• $385,000 loss recognized and a basis in Apricot stock of $770,000
• No loss recognized and a basis in Apricot stock of $385,000