Bob Exchanges 4000 Shares of Beetle Corporation Stock That He $$\begin{array} { | l | l | } \hline \text { Recognized Gain } & \text { Basis } \\\hline \$ 0 & \$ 1,000,000 \\\hline\end{array}$$

question 81

Multiple Choice

Bob exchanges 4000 shares of Beetle Corporation stock that he had purchased for $800,000 for 6000 shares of Butterfly Corporation common stock with a fair market value of $1,000,000.What is Bob's recognized gain on the exchange and his basis in the Butterfly stock?

• A) \[\begin{array} { | l | l | }
• \hline \text { Recognized Gain } & \text { Basis } \\
• \hline \$ 0 & \$ 1,000,000 \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Recognized Gain } & \text { Basis } \\
• \hline \$ 0 & \$ 800,000 \\
• \hline
• \end{array}\]
• C) \[\begin{array} { | l | l | }
• \hline \text { Recognized Gain } & \text { Basis } \\
• \hline \$ 200,000 & \$ 1,000,000 \\
• \hline
• \end{array}\]
• D) \[\begin{array} { | l | l | }
• \hline \text { Recognized Gain } & \text { Basis } \\
• \hline \$ 100,000 & \$ 800,000 \\
• \hline
• \end{array}\]

Understand the operational effects of a company’s cash management strategies and how they influence the operating cycle.

Grasp the importance of a flexible short-term financial policy and its implications on a firm's working capital and financial stability.

Understand the role of mobile devices in the growth of e-commerce segments.

Recognize the functions and significance of digital security services in e-commerce.

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