Individuals Julie and Brandon Form JB Corporation

question 1423

Multiple Choice

Individuals Julie and Brandon form JB Corporation. Julie transfers cash of $425,000 in exchange for 50% of the stock of the JB Corporation worth $410,000 and a $15,000 note. Brandon transfers equipment with a $390,000 adjusted basis and a $425,000 FMV for 50% of the stock worth $410,000 and a note of the JB Corporation valued at $15,000. Brandon's basis in the stock received is

• A) $410,000.
• B) $390,000.
• C) $425,000.
• D) $350,000.

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Definitions:

Employer Responsibility

The legal and ethical obligations of employers towards their employees, including fair wages, safe working conditions, and compliance with labor laws.

Employee Responsibility

The duties and obligations that are expected of an employee in the performance of their job.

Payroll Items

Components of an employee's compensation, including wages, salaries, bonuses, and deductions.

Employer Responsibility

The legal and ethical obligations that an employer has toward their employees, including providing a safe work environment and paying wages.