Ajax and Brindel Corporations Have Filed Consolidated Returns for Several

question 50

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) \[\begin{array} { | l | l | }
• \hline \text { Basis } & \text { Holding Period Begins On } \\
• \hline \$ 90,000 & \text { January 2of last year } \\
• \hline
• \end{array}\]
• B) \[\begin{array} { | l | l | }
• \hline \text { Basis } & \text { Holding Period Begins On } \\
• \hline \$ 60,000 & \text { January 2 of last year } \\
• \hline
• \end{array}\]
• 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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Definitions:

Wilhelm Wundt

Often regarded as the father of experimental psychology, he established the first psychology laboratory in Leipzig, Germany, in 1879.

Independent Discipline

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An American psychologist who is known for his contributions to developmental psychology and the founding of the American Psychological Association.

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