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

Comprehend the amortization of bond discount and premium using straight-line and effective interest rate methods.

Identify and explain the terms and characteristics of different types of bonds, such as callable, convertible, and term bonds.

Understand the redemption of bonds before maturity and the associated accounting entries.

Interpret balance sheet and income statement data relating to bonds to calculate financial ratios.

---

Definitions:

Residuary Clause

A provision in a will that assigns the remainder of the deceased's estate after specific gifts have been disbursed.

Uniform Anatomical Gifts Act (UAGA)

Legislation that facilitates the donation of organs and tissues for transplantation purposes.

Bequeath

The act of leaving personal property to someone through a will.

Personal Representative

A personal representative is an individual appointed to administer the estate of a deceased person under a will or through a court process.