Question
A taxpayer transfers inventory (basis of $70,000 and fair market value of $100,000) to a corporation in exchange for 100% of its stock. The stock's
A taxpayer transfers inventory (basis of $70,000 and fair market value of $100,000) to a corporation in exchange for 100% of its stock. The stock's fair market value is $130,000. How much is this taxpayer's basis in the stock?
a. $60,000
b. $70,000
c. $100,000
d. $130,000
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Managerial Accounting
Authors: Kurt Heisinger, Joe Ben Hoyle
1st Edition
1453345299, 9781453345290
