Martin Operates a Law Practice as a Sole Proprietorship Using

question 43

Multiple Choice

Martin operates a law practice as a sole proprietorship using the cash method of accounting. Martin incorporates the law practice and transfers the following items to a new, solely owned corporation. $$\begin{array} { | l | c | r | } \hline & \text { Adjusted Basis } & \text { FMV } \\\hline \text { Cash } & \$ 10,000 & \$ 10,000 \\\text { Equipment } & 80,000 & 100,000 \\\text { Accounts receivable } & 0 & 120,000 \\\text { Accounts payable (deductible expenses) } & 0 & 60,000 \\\text { Note payable (on equipment) } & 50,000 & 50,000 \\\hline\end{array}$$ Martin must recognize a gain of ________ and has a stock basis of ________:

• A) $0; $30,000
• B) $0; $40,000
• C) $20,000; $30,000
• D) $20,000; $40,000

Understand the criteria and reasons for considering behavior as abnormal.

Grasp the medical model of abnormal behavior and its implications.

Distinguish between different psychological disorders based on symptoms and diagnostic processes.

Acknowledge the impact of psychological disorders on social and occupational functioning.

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Definitions:

Anxiety

A psychological condition marked by intense feelings of anxiety, worry, or fear, sufficient to disrupt everyday life activities.

Situations

Specific set of circumstances or contexts in which events occur or decisions are made.

Generalized Anxiety Disorder

A mental health disorder characterized by persistent and excessive worry about various aspects of life, not tied to any specific threat.

Less

A comparative term indicating a smaller amount, degree, or extent of something.