Mario and Lupita Form a Corporation in a Transaction Coming

question 13

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of

• A)$0.
• B)$50,000.
• C)$100,000.
• D)$80,000.

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Definitions:

Effectiveness

The degree to which objectives are achieved and targeted results are fulfilled within an organization or system, often used as an indicator of success.

Organizational

Relating to the structure or functioning of an organization, including its systems, policies, and procedures.

Diverse Team

A group composed of members with varying backgrounds, skills, perspectives, and identities, which can enhance creativity and innovation.

Homogeneous Team

A team comprised of members with similar backgrounds, skills, and perspectives, often leading to uniformity in decision-making and problem-solving approaches.