Inger Associates, Which Manufactures Plastic Containers, Recently Sold 12,000 Containers

Multiple Choice

Inger Associates, which manufactures plastic containers, recently sold 12,000 containers to R&A Inc. The selling price per container was $18. R&A paid for the containers by transferring 864 shares of its common stock to Inger. On date of payment, R&A stock was selling on Nasdaq at $250 per share. Compute Inger's tax basis in the R&A stock.

A) -0-.
B) $216,000.
C) Inger's tax basis equals its manufacturing cost of the 12,000 containers.
D) None of these choices are correct.