Three Individuals Transferred Property to Newly Formed Triple Inc

question 31

Multiple Choice

Three individuals transferred property to newly formed Triple Inc.in exchange for 1,000 shares of common stock.Mr.Albert transferred assets with a $50,000 tax basis in exchange for 820 shares,Mrs.Billig transferred assets with a $9,000 tax basis in exchange for 148 shares,and Mrs.Crisp transferred $4,000 cash for 32 shares.Based on the FMV of the transferred assets,each Triple share is worth $125.Which of the following is false?

• A)Mr.Albert's tax basis in his 820 shares is $50,000.
• B)Triple Inc.'s tax basis in the assets transferred by Mrs.Billig is $9,000.
• C)Mrs.Crisp's tax basis in her 32 shares is $4,000.
• D)None of the above is false.

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Definitions:

Antagonism

One of five trait domains associated with personality disorders in the DSM-5, it is characterized by deceitfulness, grandiosity, callousness, and manipulativeness.

Criticism

The expression of disapproval of someone or something based on perceived faults or mistakes.

Contempt

An intense feeling of disdain or scorn for someone or something considered to be inferior or worthless.

Paranoid

A mental state or trait characterized by excessive suspicion and distrust of others without sufficient basis.