Alan, an Owl Corporation Shareholder, Makes a Contribution to Capital

question 54

True/False

Alan, an Owl Corporation shareholder, makes a contribution to capital of equipment to Owl, basis of $40,000 and fair market value of $50,000. Owl's basis of the equipment that Alan contributes is equal to $50,000, the property's fair market value.

---

Definitions:

Narrative Compositions

Artistic works that tell a story or depict a sequence of events through visual elements such as imagery, settings, and characters.

Metal Tools

Implements made primarily or entirely of metal, used for a wide range of purposes, including construction, artwork, and daily activities, marking a significant technological advancement in human history.

Paleolithic Paintings

Prehistoric cave paintings created during the Paleolithic era, depicting animals, human figures, and abstract signs.

Sea Creatures

A broad term for animals that live in the water, particularly in oceanic and sea environments, including fish, cephalopods, and marine mammals.