Roberta Transfers Property with a Tax Basis of $406 and a Fair

Multiple Choice

Roberta transfers property with a tax basis of $406 and a fair market value of $598 to a corporation in exchange for stock with a fair market value of $345 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $253 on the property transferred. What is the amount realized by Roberta in the exchange?

A) $598
B) $406
C) $345
D) $299