Question

Roberta transfers property with a tax basis of $400 and a fair market value of $500 to a corporation in exchange for stock with a fair market value of $350 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $150 on the property transferred. What is the amount realized by Roberta in the exchange?

(A) $500
(B) $400
(C) $350
(D) $250

Answer 1

Answer: the correct answer is A. $500

Step-by-step explanation:

Amount realized is the amount received from the sale of an asset. The money received for Roberta is $500.