Trolette Contributes Property with an Adjusted Basis of $80,000 and a Fair

Short Answer

Trolette contributes property with an adjusted basis of $80,000 and a fair market value of $100,000 to a newly formed business entity.If the entity is a C corporation and the transaction qualifies under § 351, the corporation's basis for the property and the shareholder's basis for the stock are: ​ $\begin{array}{ll}\text { Asset Basis }&\text { Stock Basis }\\a.\$ 80,000 & \$ 100,000 \\b.\$ 100,000 & \$ 80,000 \\c.\$ 80,000 & \$ 80,000 \\d.\$ 100,000 & \$ 100,000\end{array}$