Question
. Harry forms the Nectarine Corporation during the 2015 tax year. To form the corporation, Harry transfers assets having a fair market value of $650,000
. Harry forms the Nectarine Corporation during the 2015 tax year. To form the corporation, Harry transfers assets having a fair market value of $650,000 to Nectarine Corporation for 100 percent of the corporations stock. Harrys adjusted basis in the assets transferred was $350,000 and Nectarine Corporation assumed a $200,000 mortgage on the assets. If the fair market value of the stock received by Harry is $450,000, what is his basis in the stock received from the corporation?
| a. | $150,000 |
| b. | $200,000 |
| c. | $350,000 |
| d. | $450,000 |
| e. | None of the above |
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Fundamental Accounting Principles
Authors: John Wild, Ken Shaw, Barbara Chiappetta
19th Edition
0077303202, 9780077303204
