Martin Contributes Property with an Adjusted Basis of $100,000 and a Fair

Multiple Choice

Martin contributes property with an adjusted basis of $100,000 and a fair market value of $140,000 to a newly formed business entity.If the entity is an S corporation and the transaction qualifies under § 351,the S corporation's basis for the property and the shareholder's basis for the stock are: Asset Basis Stock Basis

A) $100,000 $140,000
B) $140,000 $100,000
C) $100,000 $100,000
D) $140,000 $140,000
E) None of the above.