Casey transfers property with a tax basis of $2,760 and a fair market value of $5,100 to a corporation in exchange for stock with a fair market value of $3,800 and $440 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $860 on the property transferred. Casey also incurred selling expenses of $524. What is the amount realized by Casey in the exchange?

$4,576.

$5,100.

$4,036.

$4,476.