John transfers property with a tax basis of $5,000 and a fair market value of $6,000 to Pine corporation in exchange for stock with a fair market value of $2,000 and $500 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $500 on the property transferred. What is John tax basis in the stock received in the exchange?

A. $5,000

B. $4,000

C. $6,000

D. $2,000

Answer rating: 100% (QA)

Correct answerB 4000 Tax b... View the full answer