Individuals Opal and Ben Form OB Corporation

question 94

Multiple Choice

Individuals Opal and Ben form OB Corporation.Opal transfers land and a building with a $550,000 adjusted basis and a $625,000 FMV in exchange for 50% of the stock of the OB Corporation worth $610,000 and a $15,000 note.Ben transfers cash of $625,000 for 50% of the stock worth $610,000 and a note of the OB Corporation valued at $15,000.Opal's basis in the stock received is

• A)$550,000.
• B)$560,000.
• C)$610,000.
• D)$625,000.

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Definitions:

Free Black Communities

Historical communities formed by African Americans who were free from slavery, often before the Civil War, creating their own cultural, economic, and social institutions.

Gold and Silver Mines

Sites or locations where gold and silver ore are extracted from the earth, historically significant for their economic value and impact on regional development.

Enslaved Africans

People from Africa who were forcibly taken from their homeland, transported to the Americas, and subjected to a lifetime of slavery.

Spanish Expeditions

Exploratory and military expeditions led by Spain from the 15th to the 17th century, resulting in the expansion of Spanish territory and influence, especially in the Americas.