Individuals Terry and Jim Form TJ Corporation

question 68

Multiple Choice

Individuals Terry and Jim form TJ Corporation.Terry transfers cash of $930,000 in exchange for 50% of the stock of the TJ Corporation worth $900,000 and a $30,000 note.Jim transfers equipment with a $890,000 adjusted basis and a $930,000 FMV for 50% of the stock worth $900,000 and a note of the TJ Corporation valued at $30,000.The basis of the equipment to TJ Corporation is

• A)$890,000.
• B)$920,000.
• C)$940,000.
• D)$960,000.

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Definitions:

Aversive Stimulus

A stimulus that is unpleasant or painful, which an organism seeks to avoid or escape.

Positive Reinforcement

A technique used in behavioral psychology to increase the likelihood of a desired behavior by following it with the addition of a reinforcing stimulus.

Punishment

A consequence that decreases the likelihood of a behavior being repeated, often used as a form of behavioral control.

Half-hearted Attempts

Efforts or actions carried out with minimal enthusiasm or commitment.