Individuals Julie and Brandon Form JB Corporation

question 6

Multiple Choice

Individuals Julie and Brandon form JB Corporation.Julie transfers cash of $425,000 in exchange for 50% of the stock of the JB Corporation worth $410,000 and a $15,000 note.Brandon transfers equipment with a $390,000 adjusted basis and a $425,000 FMV for 50% of the stock worth $410,000 and a note of the JB Corporation valued at $15,000.Brandon's basis in the stock received is

• A)$350,000.
• B)$390,000.
• C)$410,000.
• D)$425,000.

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Definitions:

Management Scrutiny

The thorough and detailed review or examination of corporate management practices and performance.

Process Innovations

The implementation of new or significantly improved production or delivery methods in an organization.

Product Innovations

The creation or significant improvement of goods or services that offer new or additional benefits to the customer.

Extrinsic Rewards

Benefits or incentives given to individuals by external factors or organizations, such as money, prizes, or recognition.