Four Shareholders Form a New Corporation in Exchange for Stock

question 21

Multiple Choice

Four shareholders form a new corporation in exchange for stock with a fair market value of $1,000 per share.Benjamin transfers investment land (current fair market value of $35,000) that he purchased 10 year ago for $15,000.In exchange, Benjamin receives 30 shares of stock and $5,000 cash.Andrew transfers a machine with a basis of $45,000 and a fair market value of $35,000.Andrew receives 30 shares of stock and $5,000 cash.Emily transfers a rental office building (current fair market value of $45,000) that she purchased 20 years ago for $60,000.Its current basis is $15,000 after recognition of $45,000 in depreciation expense.The corporation assumes the $20,000 balance on the original mortgage and Emily receives 25 shares of stock from the corporation in the exchange.Jackson provided the legal services to organize the corporation (value $5,000) and contributes $10,000 in cash in exchange for 15 shares of stock.What is Emily's basis in the stock she received?

• A)0
• B)$5,000
• C)$15,000
• D)$20,000

Recognize the concepts and expressions relating to religion's social functions and its impact on society.

Understand the various roles and statuses of women in religious institutions.

Grasp the historical origins and basic teachings of major world religions.

Appreciate the relationship between religion, social change, and modern movements.

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Definitions:

Blood Chemistry

The analysis of chemical components in the blood, often used to diagnose conditions and assess organ function.

Diagnostic Blood Test

A medical test performed on a blood sample to determine the presence of diseases, conditions, or infections.

Carbon Dioxide

A gas that is both colorless and odorless, created through the combustion of carbon and organic materials as well as during the process of respiration, which is then utilized by plants during photosynthesis.

Erythrocyte

A red blood cell, responsible for carrying oxygen throughout the body.