Adam transfers property with an adjusted basis of $$50,000($fair market value of $$400,000)$ to Swift Corporation for $90\%$ of the stock. The property is subject to a liability of $$60,000,$ which Swift assumes. What is the basis of the Swift stock to Adam?

Answer rating: 100% (QA)

In this scenario Adam recognizes a gain on the transfer of the property but the liability assumed by ... View the full answer