If property contributed by a shareholder in a valid Section 351 exchange is encumbered by a liability that is assumed by the corporation, ________________.

SELECT THE BEST ANSWER FROM THE LIST BELOW!!

Question options:

	a. The amount of the liability assumed is not treated as boot received by the transferor
	b. The treatment of the liability assumption depends upon whether there is a legitimate business purpose for the property to be encumbered by a liability prior to the transfer
	c. none of the above