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When a transferor contributes property to a corporation in exchange for stock in the corporation, and...

When a transferor contributes property to a corporation in exchange for stock in the corporation, and the transaction qualifies under section 351 the transferor takes what kind of basis in the stock?

a. transferred basis

b. exchanged basis

c. substituted basis

d. both a and b

e. both b and c

f. both a and c

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Answer #1

Ans: Option d transferred and exchanged basis

As per Section 351 of IRS,

Transferor transfers property to a corporation in exchange for stock in the corporation under transferred and exchange basis.

If any doubts or queries please comment and clarify I'll explain ASAP

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