Four Shareholders Form a New Corporation in Exchange for Stock

question 5

Multiple Choice

Four shareholders form a new corporation in exchange for stock with a fair market value of $1,000 per share.Benjamin transfers investment land (current fair market value of $35,000) that he purchased 10 year ago for $15,000.In exchange, Benjamin receives 30 shares of stock and $5,000 cash.Andrew transfers a machine with a basis of $45,000 and a fair market value of $35,000.Andrew receives 30 shares of stock and $5,000 cash.Emily transfers a rental office building (current fair market value of $45,000) that she purchased 20 years ago for $60,000.Its current basis is $15,000 after recognition of $45,000 in depreciation expense.The corporation assumes the $20,000 balance on the original mortgage and Emily receives 25 shares of stock from the corporation in the exchange.Jackson provided the legal services to organize the corporation (value $5,000) and contributes $10,000 in cash in exchange for 15 shares of stock.How much gain does Emily recognize?

• A)0
• B)$5,000
• C)$15,000
• D)$20,000

Understand the relative stability of different alkenes based on molecular structure.

Apply Zaitsev's rule to predict the most stable alkene.

Determine the heat of hydrogenation for various alkenes.

Recognize the application of Bredt's rule and its violation.

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Definitions:

Decaying Organic Matter

Organic material breaking down through the process of decomposition, typically by microbial action.

Ecosystem

A community of living organisms in conjunction with the nonliving components of their environment, interacting as a system.

Metabolism

All of the enzyme-mediated reactions in a cell.

Nitrous Oxide

A colorless gas with significant greenhouse and ozone-depleting potentials, commonly used as an anesthetic and a propellant.