Max Transfers the Following Properties to a Newly Created Corporation

question 64

Multiple Choice

Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,0 in a transaction that qualifies under Sec. 351.
$\begin{array}{|l|l|l|l|}\hline & \text { Asset One } & \text { Asset Two } & \text { Asset Three } \\\hline \text { FMV } & \$ 30,000 & \$ 45,000 & \$ 25,000 \\\text { Basis } & 35,000 & 40,000 & 20,000\\\hline\end{array}$ Max's recognized gain is

• A) $3,000.
• B) $5,000.
• C) $10,000.
• D) $7,000.

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Definitions:

Social Skills

Abilities that facilitate interaction and communication with others in a socially acceptable manner.

Precipitate Depression

Depression that is rapidly triggered or worsened by specific events or situations, often characterized by a sudden onset.

Life Events

Significant occurrences in a person's life that can have profound effects on their psychological and emotional well-being.

Social Skills

The abilities necessary for successful social interaction and communication.