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

question 64

Multiple Choice

Ron 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 the adjusted basis of the stock received?

• A)$0
• B)$30,000
• C)$60,000
• D)$70,000

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Definitions:

Primary Circular Reaction

In Piaget’s theory, repeating an action that produced a chance event involving the infant’s body.

Mental Representations

Internal images, ideas, concepts, or thoughts that represent external reality or abstract notions within the mind.

Sensorimotor Substage

A phase in early child development in Piaget's theory where infants learn through interacting with the environment using their senses and motor abilities.

Intellectual Images

Visual representations in the mind that are used for processing and understanding complex ideas or concepts that are not immediately present to the senses.