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Amy transfers property with a tax basis of $1,180 and a fair market value of $1,035 to a corporation in exchange for stock with a fair market value of $920 in a transaction that qualifies for deferral under section 351

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Amy transfers property with a tax basis of $1,180 and a fair market value of $1,035 to a corporation in exchange for stock with a fair market value of $920 in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $115 on the property transferred. What is Amy's tax basis in the stock received in the exchange?

Multiple Choice

• $1,180

• $1,065

• $965

• $920