Ashley Transfers Property with a Tax Basis of $7,430 and a Fair

Multiple Choice

Ashley transfers property with a tax basis of $7,430 and a fair market value of $4,985 to a corporation in exchange for stock with a fair market value of $2,445 and $1,130 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $1,410 on the property transferred. What is Ashley's tax basis in the stock received in the exchange?

A) $7,430
B) $4,890
C) $4,985
D) $2,445