George transferred investment property to his brother's C corporation in exchange for shares of stock. The FMV of the property on the date of transfer was $70,000, and George's basis in the property was $40,000. What is George's basis in the stock? Question 37Select one: a. $ 40,000 This answer is incorrect. When stockholder transfers property in exchange for stock, he is assumed to have sold the property and purchased the stock. b. $ 30,000 c. $ 70,000 d. $110,000