Stanley transfers a building with an adjusted basis of $150,000 and a fair market value of $200,000
Fantastic news! We've Found the answer you've been seeking!
Question:
Stanley transfers a building with an adjusted basis of $150,000 and a fair market value of $200,000 to Costello Corporation in return for 85 percent its stock worth $110,000. The building is subject to a mortgage of $90,000 which Costello assumes. Assuming the transaction qualifies as a Code Sec. 351 transfer, Costello's basis in the building is:
a. $200,000
b. $150,000
c. $110,000
d. $60,000
Related Book For
Concepts in Federal Taxation
ISBN: 9780324379556
19th Edition
Authors: Kevin E. Murphy, Mark Higgins, Tonya K. Flesher
Posted Date: