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

question 37

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 A's basis for his AB stock?

• A) $180,000
• B) $170,000
• C) $160,000
• D) $150,000

---

Definitions:

Particular Frame

A specific perspective, interpretation, or point of view from which situations, events, or concepts are analyzed or understood.

Managers and Employees

Refers to the relationship and roles within an organization where managers are responsible for planning, leading, organizing, and controlling, while employees execute tasks and responsibilities.

Open System

An open system is a system that regularly exchanges feedback with its external environment. Open systems are adaptive in nature because they react to changes in the environment.

Organizational Internal

Refers to processes, practices, or issues that occur within an organization, as opposed to external or outward-facing ones.