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:

Associative Play

A developmental stage where children play alongside each other but do not directly interact or coordinate their play.

Cross-Pollination

The sharing or transfer of knowledge, ideas, and practices across different sectors, industries, or departments, leading to innovation and improvement.

Job Security

The probability or likelihood that an individual will retain their job without the risk of becoming unemployed.

Risk Losing

The potential or likelihood of experiencing a loss, failure, or negative outcome as a result of taking an action or making a decision.