Daniel transfers land with a $92,000 adjusted basis and a $100,000 FMV to a corporation in a Sec. 351 transfer. Immediately after the transfer, Daniel owns 100% of the corporation-stock with a FMV of $15,000. In addition, $85,000 of business-related liabilities are assumed by the corporation with respect to the transfer. No other property is transferred. Daniel's basis in the stock is
A) $0.
B) $7,000.
C) $8,000.
D) $100,000.
B) $7,000.
Business
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