A Transfers Machines Valued at $170,000 (Basis = $150,000) Along

question 71

Multiple Choice

A transfers machines valued at $170,000 (basis = $150,000) along with $30,000 cash to AB Corporation and B transfers real property valued at $320,000 (basis = $310,000) to the corporation.A receives 40 percent of the outstanding stock and B receives 60 percent.B also receives $20,000 from the corporation.What are A's and B's recognized gains, respectively, on these transfers?

• A)$20,000, 0
• B)0, $20,000
• C)0, $10,000
• D)0, 0

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Definitions:

Uniform Anatomical Gift Act

A law in the United States that facilitates the donation of organs and tissues for transplantation.

Organ Donations

The act of giving one or multiple organs without compensation for transplant into another person, often saving or significantly improving the recipient's quality of life.

Anatomical Gifts

The donation of one's organs or body tissues to medical science or to another individual in need of a transplant.

Exclusively Statutory

Pertaining to laws or regulations enacted by a legislative body, without any basis in common law or judicial interpretations.