In: Accounting
Trista transfers property with a tax basis of $900 and a fair market value of $1,200 to a corporation in exchange for stock with a fair market value of $950 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $250 on the property transferred. What is Tristan's stock tax basis after the exchange?
Possible tax implications of this alongwith computation of adjusted basis is enclosed.