Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. The corporation's basis in the property is
A) $200,000.
B) $150,000.
C) $80,000.
D) $130,000.
B) $150,000.
The transferor's basis for the property becomes the corporation's basis.
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