Carolyn Transfers Property with an Adjusted Basis of $50,000 and an FMV

question 58

Multiple Choice

Carolyn transfers property with an adjusted basis of $50,000 and an FMV of $60,000 in exchange for Prime Corporation stock in a Sec. 351 transaction. Carolyn's basis in the stock is

• A)$60,000.
• B)$50,000.
• C)$10,000.
• D)$0.

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Definitions:

Classical Conditioning

A learning process in which a natural response is elicited by a conditioned stimulus that is previously paired with an unconditioned stimulus.

Skinner Box

An experimental apparatus created by B.F. Skinner to study animal behavior through controlled environments.

Peck

A unit of dry volume or a way birds use their beaks to eat, communicate, or interact with their environment.

Reflexive Response

An automatic, involuntary reaction to a stimulus, not requiring conscious thought.