Question: 18. Clark and Hunt organized Jet Corp. with authorized voting common stock of $400,000. Clark contributed $60,000 cash. Both Clark and Hunt transferred other property

18. Clark and Hunt organized Jet Corp. with authorized voting common stock of $400,000. Clark contributed

$60,000 cash. Both Clark and Hunt transferred other property in exchange for Jet stock as follows:

Other property Adjusted basis Fair market value Percentage of Jet stock acquired Clark $ 50,000 $100,000 40%

Hunt 120,000 240,000 60%

What was Clark’s basis in Jet stock?

a. $0

b. $100,000

c. $110,000

d. $160,000

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