A Transfers Machines Valued at $170,000 (Basis = $150,000) Along

Multiple Choice

A transfers machines valued at $170,000 (basis = $150,000) along with $30,000 cash to AB Corporation and B transfers real property valued at $320,000 (basis = $310,000) to the corporation. A receives 40 percent of the outstanding stock and B receives 60 percent. B also receives $20,000 from the corporation. What is B's basis for his AB stock?

A) $340,000
B) $320,000
C) $310,000
D) $300,000