Jeremy Transfers Sec

question 94

Multiple Choice

Jeremy transfers Sec. 351 property acquired three years earlier having a $100,000 basis and a $160,000 FMV to Jeneva Corporation. Jeremy receives all 200 shares of Jeneva stock having a $140,000 FMV, and a $20,000 90-day Jeneva note. What is Jeremy's recognized gain?

• A)$0
• B)$60,000
• C)$20,000
• D)$160,000

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Definitions:

Self-Serving Bias

A readiness to perceive oneself favorably.

Defensive Self-Esteem

This refers to a form of self-esteem that is fragile and highly reactive to criticism, often involving a defensive or hostile attitude as a protective mechanism.

Narcissism

Excessive self-love or vanity; self-admiration that is characterized by a lack of empathy for others.

Oral Stage

A stage of psychosexual development proposed by Freud, characterized by pleasure centers on the mouth.