What is rachelles tax basis in stock received in exchange

Assignment Help Accounting Basics

Reference no: EM131969153

Problem

Rachelle transfers property with a tax basis of $800 and a fair market value of $900 to a corporation in exchange for stock with a fair market value of $750 and $50 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $100 on the property transferred. What is Rachelle's tax basis in the stock received in the exchange?

Reference no: EM131969153

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