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.

---

Definitions:

Social Enterprise

An organization that operates with the primary goal of addressing social issues, combining commercial strategies with social objectives to improve human and environmental well-being.

Stakeholders

The people or groups affected by or involved with the achievements of the social enterprise’s objectives.

Definitive Stakeholder

A key individual or group that has a significant interest or investment in the outcome of a project or business.

Legitimacy

The recognition or acceptance of an entity's actions, authority, or status as rightful and appropriate.