Carlos Transfers Property with a Tax Basis of $535 and a Fair

Multiple Choice

Carlos transfers property with a tax basis of $535 and a fair market value of $1,060 to a corporation in exchange for stock with a fair market value of $785 and $56 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $219 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

A) $1,060
B) $729
C) $591
D) $372