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Business, 09.04.2021 04:40 brookcoyanpeus5y

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 cash in a transaction that qualifies as a section 351 transfer. 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) $6,000.
B) $5,000.
C) $4,000.
D) $3,000.

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