Antoine Transfers Property with a Tax Basis of $525 and a Fair

Multiple Choice

Antoine transfers property with a tax basis of $525 and a fair market value of $754 to a corporation in exchange for stock with a fair market value of $649 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $105 on the property transferred. What is Antoine's tax basis in the stock received in the exchange?

A) $754
B) $649
C) $525
D) $420