Ajax and Brindel Corporations Have Filed Consolidated Returns for Several

question 52

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) \[\begin{array} { | l | l | }
• \hline \text { Basis } & \text { Holding Period Begins On } \\
• \hline \$ 60,000 & \text { Tanuary } 2 \text { of last year } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Basis } & \text { Holding Period Begins On } \\
• \hline\$ 900,000 & \text { Tanuary } 2 \text { of last year } \\
• \hline
• \end{array}\]
• 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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