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Antoine transfers property with a tax basis of $500 and a fair market value of $600 to a corporation in exchange for stock with a

Antoine transfers property with a tax basis of $500 and a fair market value of $600 to a corporation in exchange for stock with a fair market value of $550 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $50 on the property transferred. What is Antoine's tax basis in the stock received in the exchange?

Multiple Choice

  • $550
  • $500
  • $600
  • $450

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