Exam Question 16 of 30 Select the best answer. Stacey, a cash-basis taxpayer, in

Question

Exam Question 16 of 30 Select the best answer. Stacey, a cash-basis taxpayer, incorporated her CPA practice. No liabilities were transferred. The following assets were transferred to the corporation Cash (checking account) Computer equipment: $500 Adjusted basis Fair market value Original cost 30,000 34,000 40,000 Immediately after the transfer, Stacey owned 100% of the corporation's stock, what is the corporation's total basis for the transferred assets? A. $30,000 O B. $30,500 C. $34,500 Question Q 16 87% Complete Exit & Resume Later al

Explanation / Answer

The corporation's total basis for the transferred assets will be equal to Stacey's basis in the assets.

Therefore,

Corporations total basis in the assets = $500 + $30,000 = $30,500

Thus,

The correct answer is B.

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