Which of the following statements best describes the "built-in loss" rules that apply to

property transferred to a corporation under section 351?

A) If the basis of a property transferred to a corporation under section 351 exceeds its

fair market value, the corporation will always take a tax basis in the property

equal to the property's fair market value.

B) If the aggregate basis of all property transferred to a corporation under section 351

exceeds its aggregate fair market value, the aggregate tax basis of the property in

the hands of the corporation cannot exceed the aggregate tax basis of the property.

C) If the basis of a property transferred to a corporation under section 351 exceeds its

fair market value, the corporation will always take a tax basis in the property

equal to the property's tax basis in the hands of the shareholder.

D) If the aggregate basis of all property transferred to a corporation under section 351

exceeds its aggregate fair market value, the aggregate tax basis of the property in

the hands of the corporation cannot exceed the aggregate fair market value of the

property