On July 1, 2015, Robert Forms the Yew Corporation

question 60

Multiple Choice

On July 1, 2015, Robert forms the Yew Corporation. In exchange for 100 percent of the corporation's stock, Robert contributes land with a fair market value of $100,000. Robert acquired the land 5 years ago at a cost of $30,000. At the date of the contribution, the land is subject to a $10,000 mortgage which the corporation assumes. What is the basis of the land to Yew Corporation?

• A)$20,000
• B)$30,000
• C)$90,000
• D)$100,000
• E)None of the above

---

Definitions:

Analysts' Conflicts

Situations where financial analysts' personal interests or relationships conflict with the professional advice they provide, potentially leading to biased information.

New York Stock Exchange

A leading global financial exchange for buying and selling stocks, located in New York City.

Investment Banking

A sector of the banking industry that deals with capital creation for other companies, governments, and other entities.

SEC's Regulation AC

Refers to the U.S. Securities and Exchange Commission's Rule that requires analysts to certify the truthfulness of their research reports and to disclose any potential conflicts of interest.