Roy transfers property with a tax basis of $800 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $400 and $50 in cash in a transaction that qualifies for deferral under section 351. the corporation assumed a liability of $50 on the property transferred. what is roy's tax basis in the stock received in the exchange?

Roy's tax basis in the stock received = $700

Explanation:

given data

transfers property = $800

fair market value = $500

fair market value = $400

Liability assumed = $50

Boot received = $50

to find out

tax basis in the stock received in the exchange

solution

we get here Roy's tax basis in the stock received that is express as

Roy's tax basis in the stock received = transfers property - Liability assumed - Boot received 1

put here value we get

Roy's tax basis in the stock received = $800 - $50 - $50

Roy's tax basis in the stock received = $700

commercial banking

provide online payment services

provide online banking

asset management firms

invest in people's funds in securities

accept tax return refunds

1) the stages a new product goes through from beginning to end, i.e., the stages that a product passes through from introduction through growth, maturity, and decline. 2) the time from initial research and development to the time at which sales and support of the product to customers are withdrawn. 3) the period of time during which a product can be produced and marketed profitably.

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