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

question 63

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 is AB Corporation's basis for the real property?

• A) $300,000
• B)$310,000
• C) $320,000
• D) $330,000

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Definitions:

Depression

A mental health disorder characterized by persistently low mood, loss of interest in activities, and reduced ability to experience pleasure.

Migraines

A neurological condition characterized by intense, debilitating headaches often accompanied by other symptoms such as nausea and light sensitivity.

Body Composition

The ratio of fat to lean tissue (including water, bone, muscle, and other organs) in the human body.

Basic Component

An essential element or part of a complex system or substance, fundamental to its function or structure.