Nigel and Frank Form NFS, Inc

question 52

Multiple Choice

Nigel and Frank form NFS, Inc. an electing S corporation, by combining the assets of their respective businesses. Nigel contributes $10,000 and assets worth $90,000 (adjusted basis of $60,000) for a 1/3 interest. Frank contributes $90,000 and assets worth $270,000 (adjusted basis of $150,000) for a 2/3 interest. NFS also assumes $60,000 of debt on Frank's assets. What is Nigel's basis in his stock?

• A)$70,000
• B)$90,000
• C)$100,000
• D)$120,000
• E)$160,000

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Definitions:

Allergies

Hypersensitive reactions by the immune system to substances that are normally harmless to most people.

Emergency Contact

A designated person to be contacted in the event of an individual's accident, illness, or other emergency situations.

Prenatal Care

Medical and healthcare provided to women during pregnancy aimed at ensuring a healthy pregnancy and childbirth.

Prepregnancy Weight

The body weight of a woman before becoming pregnant, often used as a baseline for monitoring weight changes during pregnancy.