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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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