In Order to Induce Prairie Corporation to Build a New

question 1

Multiple Choice

In order to induce Prairie Corporation to build a new manufacturing facility in Billings, the city donates land (fair market value of $400,000) and cash of $50,000 to the corporation.Within several months of the donation, Prairie Corporation spends $350,000 (which includes the $50,000 received from Billings) on the construction of a new plant located on the donated land.

• A)Prairie must recognize income of $50,000 as to the donation.
• B)Prairie will have a zero basis in the land and a basis of $50,000 in the plant.
• C)Prairie must recognize income of $350,000 as to the donation.
• D)Prairie will have a zero basis in the land and a basis of $300,000 in the plant.
• E)None of the above.

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Definitions:

Levels Of Human Resource Planning

Levels of human resource planning refer to the stratification of HR planning processes, from strategic to operational, ensuring the right number of people with the right skills are in place.

Projected Human Resource Needs

Forecasts of an organization's future requirements for staff, skills, and positions to meet its objectives.

Internal Sources

Refers to the methods and resources within an organization that can be utilized for information gathering, problem solving, or fulfilling business needs.

Replacement Status

A term indicating whether a position is being filled temporarily or permanently, especially in the context of employment or staffing.