A Transfers Machines Valued at $170,000 (Basis = $150,000) Along

question 71

Multiple Choice

A transfers machines valued at $170,000 (basis = $150,000) along with $30,000 cash to AB Corporation and B transfers real property valued at $320,000 (basis = $310,000) to the corporation.A receives 40 percent of the outstanding stock and B receives 60 percent.B also receives $20,000 from the corporation.What are A's and B's recognized gains, respectively, on these transfers?

• A)$20,000, 0
• B)0, $20,000
• C)0, $10,000
• D)0, 0

---

Definitions:

Cannibalization

A situation in which a new product or service significantly reduces the sales or market share of an existing product or service offered by the same company.

Co-Branding

A marketing partnership between at least two different brands of goods or services to leverage the strength of each brand.

Brand Equity

The value and strength of a brand that determines its worth, shaped by consumer perceptions, experiences, and associations.

Brand Awareness

Refers to how familiar the general public or target audience is with a brand and its products or services.