Rachelle Transfers Property with a Tax Basis of $825 and a Fair

Multiple Choice

Rachelle transfers property with a tax basis of $825 and a fair market value of $1,300 to a corporation in exchange for stock with a fair market value of $700 and $214 incash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $386 on the property transferred. What is the corporation's tax basis in the property received in the exchange?

A) $1,300
B) $1,039
C) $825
D) $700