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Joshua receives Dee Corp. stock worth $135,000 and $15,000 cash in a Section 351 transaction where he transfers property worth $150,000 (adjusted basis = $120,000).

Joshua receives Dee Corp. stock worth $135,000 and $15,000 cash in a Section 351 transaction where he transfers property worth $150,000 (adjusted basis = $120,000). What is Dee Corp.s basis in the property received?

a.

$150,000

b.

$120,000

c.

$145,000

d.

$135,000

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