Arturo transfers land with a FMV of $900,000 to a newly-formed corporation in exchange for all the stock. The land has a basis of $600,000 and debt of $400,000. The basis of the land, in the hands of the corporation is:
A. $900,000.
B. $300,000.
C. $600,000.
D. $400,000.
Answer: C
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