Ralph transfers property with an adjusted basis of $65,000 and a FMV of $70,000 to Lake Corporation

Question:

Ralph transfers property with an adjusted basis of $65,000 and a FMV of $70,000 to Lake in a Sec. 351 transaction. Ralph receives a stock worth $60,000 and a short-term note having $10,000 FMV. Ralph’s basis in the stock is?
A) $75,000
B) $70,000
C) $65,000
D) $60,000

Corporation
A Corporation is a legal form of business that is separate from its owner. In other words, a corporation is a business or organization formed by a group of people, and its right and liabilities separate from those of the individuals involved. It may...