German Associates, which manufactures plastic containers, recently sold 12,000 containers to RAW Incorporated. The selling price per container was $18. RAW paid for the containers by transferring 864 shares of its common stock to German Associates. On date of payment, RAW stock was selling on Nasdaq at $250 per share. Compute German's tax basis in the RAW stock.

Multiple Choice

• -0-.
• $216,000.
• Inger's tax basis equals its manufacturing cost of the 12,000 containers.
• None of these choices are correct.