Bob Transfers Assets with a $100,000 FMV (Basis $60,000)and $70,000

question 46

Multiple Choice

Bob transfers assets with a $100,000 FMV (basis $60,000) and $70,000 of liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $30,000.The corporation assumes the $70,000 mortgage.The transfer qualifies under Sec.351.What is Bob's gain recognized on the transfer?

• A)$0
• B)$10,000
• C)$30,000
• D)$40,000

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Definitions:

World-Class Capabilities

Exceptional skills, methods, and processes that enable an organization to perform at the highest international standards.

Outsourcing Concerns

Issues or considerations related to the practice of transferring business processes or services to external providers, including quality, security, and dependency risks.

Supplier's Risks

Potential challenges or threats that suppliers face, including financial instability, production issues, or market demand changes.

Layoffs

The act of temporarily or permanently dismissing employees from their jobs, often due to economic downturns or organizational restructuring.