Sybil transfers property with a tax basis of $5,000 and a fair market value of $6,000 to a corporation in exchange for stock with a fair market value of $3,000 and $2,000 in cash in a transaction that qualifies for deferral under ยง351. The corporation assumed a liability of $1,000 on the property transferred. What is Sybil's tax basis in the stock received in the exchange?
A. $5,000
B. $3,000
C. $4,000
D. $6,000
Answer: B
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What is bureaucracy?
What will be an ideal response?
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