How Much Gain (Loss)will Jimmy Recognize from the Transfer of the Assets

question 45

Multiple Choice

How much gain (loss) will Jimmy recognize from the transfer of the assets to the corporation?

• A)$ -0-
• B)$ (4,000)
• C)$ 8,000
• D)$ 20,000
• E)$(12,000)

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Definitions:

Used

Items that have been previously owned or utilized by someone before being sold or transferred.

Selling and Administrative Expense

Costs unrelated to direct production of goods or services, including costs associated with sales, marketing, and general administration.

Assembly Line

A production method where components are sequentially attached to an item, resulting in an efficiently completed product.

Wages

Payments made to employees based on the hours worked or tasks performed, typically on a regular basis.