Ashley transfers property with a tax basis of $5,640 and a fair market value of $3,520 to a corporation in exchange for stock with a fair market value of $2,120 and $635 in cash in a transaction that qualifies for deferral under section 351. The corporation assumed a liability of $765 on the property transferred. What is Ashley's tax basis in the stock received in the exchange?
Multiple Choice
$5,640
$4,240
$3,520
$2,120