Inger Associates,which Manufactures Plastic Containers,recently Sold 12,000 Containers to R&A

Multiple Choice

Inger Associates,which manufactures plastic containers,recently sold 12,000 containers to R&A Inc.The selling price per container was $18.R&A paid for the containers by transferring 864 shares of its common stock to Inger.On date of payment,R&A stock was selling on Nasdaq at $250 per share.Compute Inger's tax basis in the R&A stock.

A) -0-.
B) $216,000.
C) Inger's tax basis equals its manufacturing cost of the 12,000 containers.
D) None of the above