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Antoine transfers property with a tax basis of $505 and a fair market value of $635 to a corporation in exchange for stock with a fair market value of $610 in a transaction that qualifies for deferral under section 351

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Antoine transfers property with a tax basis of $505 and a fair market value of $635 to a corporation in exchange for stock with a fair market value of $610 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $25 on the property transferred. What is Antoine's tax basis in the stock received in the exchange?

Multiple Choice

• $635

• $610

• $505

• $480