Mario and Lupita Form a Corporation in a Transaction Coming

question 7

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one- half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of

• A) $100,000.
• B) $80,000.
• C) $50,000.
• D) $0.

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Definitions:

Genetic Information

Data about an individual's genes and chromosomal setup, including traits inherited from parents.

Nucleus

An organelle found in eukaryotic cells responsible for containing most of the cell's genetic material.

DNA Fingerprinting

A technique used to identify individuals by analyzing characteristics of their DNA, often used in forensic science.

Sex Chromosomes

Chromosomes that determine the biological sex of an organism, in humans typically represented as XX for females and XY for males.