Ajax and Brindel Corporations Have Filed Consolidated Returns for Several

question 9

Multiple Choice

Ajax and Brindel Corporations have filed consolidated returns for several calendar years. Ajax acquires land for $60,000 on January 1 of last year. On September 1 of this year, Ajax sells the land to Brindel for $90,000. The basis and holding period for the land acquired by Brindel are:

• A) \[\begin{array} { | l | l | }
• \hline \text { Basis } & \text { Holding Period Begins On } \\
• \hline \$ 60,000 & \text { january } 2 \text { of last year } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Basis } & \text { Holding Period Begins On } \\
• \hline \$ 90,000 & \text { january } 2 \text { of last year } \\
• \hline
• \end{array}\]
• C) \(\begin{array}{|l|l|}
• \hline\text { Basis } & \text { Holding Period Begins On } \\
• \hline\$ 90,000 & \text { September } 2 \text { of this year } \\
• \hline
• \end{array}\)
• D) none of the above

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Definitions:

Blood Vessels

Tubular structures in the body responsible for transporting blood to and from the heart and throughout the body, including arteries, veins, and capillaries.

Striated Involuntary

Relating to muscle tissue that is marked by a pattern of stripes or striations and is not under conscious control, such as the heart muscle.

Axons

Long, slender projections of nerve cells (neurons) that transmit electrical impulses away from the neuron's cell body.

Action Potentials

Rapid changes in the electrical charge of a neuron's membrane, facilitating the transmission of nerve impulses.