Sofia Forms Lark Corporation with a Transfer of Appreciated Property

question 78

True/False

Sofia forms Lark Corporation with a transfer of appreciated property in exchange for all of its shares. Shortly thereafter, she transfers half her shares to her son, Ted. The later transfer to Ted could cause the original transfer to be taxable.

---

Definitions:

Milling Operation

A machining process that uses a rotating cutting tool to remove material from the surface of a workpiece, typically to achieve a desired shape or finish.

Metric System

A decimal system of weights and measures based on the meter, liter, and gram as units of length, capacity, and weight or mass, respectively.

Grade Number

A numerical designation representing the classification, quality, or performance level of a material or product.

Tolerance Zone

A specified range within which a part's dimensions or properties must lie to be acceptable for its intended purpose.