Gearty and Olinto organized The Worthington Corp., which issued voting common stock with a fair market value of $240,000. They each transferred property in exchange for stock as follows:

The building was subject to a $20,000 mortgage that was assumed by The Worthington Corp. What was Gearty’s basis in The Worthington Corp, stock?

a. $164,000

b. $80,000 

c. $60,000

d. $0

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Adjusted Basis Percentage of The Worthington Corp. Stock Acquired Fair Market Property Value Gearty Olinto Building Land $80,000 $164,000 60% 40% 10,000 96,000