Ruth Transfers Property Worth $200,000 (Basis of $60,000) to Goldfinch

question 37

True/False

Ruth transfers property worth $200,000 (basis of $60,000) to Goldfinch Corporation. In return, she receives 80% of its stock (worth $180,000) and a long-term note executed by Goldfinch and made payable to Ruth (worth $20,000). Ruth will recognize no gain on the transfer.

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Definitions:

Veracruz

A major port city on the Gulf of Mexico in Mexico, historically significant for its role in trade and military invasions.

Gulf of Mexico

A large ocean basin bordered by North America, primarily the United States and Mexico, known for its significant biodiversity, oil resources, and as a critical maritime route.

Total War

A method of warfare that involves mobilizing all of a nation's resources and population towards the war effort, blurring the lines between civilian and military targets.

American Troops

Military forces from the United States, including the Army, Navy, Air Force, Marine Corps, and Coast Guard, which have been involved in various conflicts and peacekeeping missions globally.