Evan Erman transferred inventory to a corporation in a Code Sec 351 transaction His basis in the inventory was $10,000 and its value was $8,000 If he received $2,000 in cash and 100 shares of stock, the resulting bases are Evan's stock $8,000 Corporation's inventory $10,000 Evan's stock $10,000 Corporation's inventory $10,000 Evan's stock $8,000 Corporation's inventory $8,000 Evan's stock $8,000 Corporation's inventory $12,000

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Question: Evan Erman transferred inventory to a corporation in a Code Sec. 351 transaction. His basis in the inventory was $10,000 and its value was $8,000.

Evan Erman transferred inventory to a corporation in a Code Sec. 351 transaction. His basis in the inventory was $10,000 and its value was $8,000. If he received $2,000 in cash and 100 shares of stock, the resulting bases are:

Evan's stock: $8,000; Corporation's inventory: $10,000
Evan's stock: $10,000; Corporation's inventory: $10,000
Evan's stock: $8,000; Corporation's inventory: $8,000
Evan's stock: $8,000; Corporation's inventory: $12,000

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