A Transfers Machines Valued at $170,000 (Basis = $150,000)along with $30,000

question 36

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 machines?

• A)$150,000
• B) $160,000
• C)$170,000
• D)$180,000
• E)None of the above

Analyze the impact of government spending and taxes on the economy.

Understand the concept of the multiplier effect and how it operates within the economy.

Grasp the crowding-out effect and its implications on fiscal policy and investment.

Recognize the relationship between interest rates, stock prices, and monetary policy.

---

Definitions:

Firm Offer

An offer (by a merchant) that is irrevocable without consideration for a period of time (not longer than three months). A firm offer by a merchant must be in writing and must be signed by the offeror.

Irrevocable

Incapable of being retracted, revoked, or undone; permanent.

Consistent Additional Terms

Supplemental terms in a contract or agreement that are in harmony with the original stipulations without causing contradictions or conflicts.

Sales Contract

A legally binding agreement between buyer and seller detailing the terms and conditions of a sale of goods or services.