Individuals Opal and Ben Form OB Corporation

question 332

Multiple Choice

Individuals Opal and Ben form OB Corporation. Opal transfers land and a building with a $550,000 adjusted basis and a $625,000 FMV in exchange for 50% of the stock of the OB Corporation worth $610,000 and a $15,000 note. Ben transfers cash of $625,000 for 50% of the stock worth $610,000 and a note of the OB Corporation valued at $15,000. Opal's basis in the stock received is

• A) $560,000.
• B) $625,000.
• C) $550,000.
• D) $610,000.

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Definitions:

Internalize

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ISO 14000

A family of standards related to environmental management systems and tools designed to help organizations minimize negative effects on the environment.

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The capacity for systems, processes, and activities to maintain themselves over time and minimize negative environmental impacts.

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Expenses associated with the collection, sorting, processing, and reuse of materials to prevent waste.