Antoine Transfers Property with a Tax Basis of $500 and a Fair

Multiple Choice

Antoine transfers property with a tax basis of $500 and a fair market value of $600 to a corporation in exchange for stock with a fair market value of $550 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $50 on the property transferred. What is Antoine's tax basis in the stock received in the exchange?

A) $600
B) $550
C) $500
D) $450