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