20. Chan transfers property with an adjusted basis of $65,000 and an FMV of S70,000 to Wallis Corporation in a Sec. 351 transaction. Chan receives stock worth $60,000 and a short-term note having a S10,000 FMV. Chan's basis in the stock is A) $60,000. B) S65,000. C) $70,000. D) $75,000.

20. Chan transfers property with an adjusted basis of $65,000 and an FMV of S70,000 to Wallis Corporation in a Sec. 351 transaction. Chan receives stock worth $60,000 and a short-term note having a S10,000 FMV. Chan's basis in the stock is A) $60,000. B) S65,000. C) $70,000. D) $75,000.

SWFT Corp Partner Estates Trusts

42nd Edition

ISBN:9780357161548

Author:Raabe

Publisher:Raabe

Chapter4: Corporations: Organization And Capital Structure

Section: Chapter Questions

Problem 36P

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20. Chan transfers property with an adjusted basis of S65,000 and an FMV of S70,000 to Wallis
Corporation in a Sec. 351 transaction. Chan receives stock worth $60,000 and a short-term note having a
$10,000 FMV. Chan's basis in the stock is
A) $60,000.
B) S65,000.
C) $70,000.
D) $75,000.

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