Hunter and Warren Form Tan Corporation

question 34

Multiple Choice

Hunter and Warren form Tan Corporation. Hunter transfers equipment (basis of $210,000 and fair market value of $180,000) while Warren transfers land (basis of $15,000 and fair market value of $150,000) and $30,000 of cash. Each receives 50% of Tan's stock. As a result of these transfers:

• A) Hunter has a recognized loss of $30,000, and Warren has a recognized gain of $135,000.
• B) Neither Hunter nor Warren has any recognized gain or loss.
• C) Hunter has no recognized loss, but Warren has a recognized gain of $30,000.
• D) Tan Corporation will have a basis in the land of $45,000.
• E) None of the above.

---

Definitions:

Strategies

Strategies are plans of action or policies designed to achieve a major or overall aim.

Role Improvement

The process of enhancing or upgrading an individual's performance and satisfaction in their specific role.

Parenting

Parenting encompasses the actions and practices involved in raising children, focusing on their physical, emotional, social, and intellectual development from infancy through adulthood.

Desired Change

The specific alterations or outcomes that an individual or group aims to achieve through various actions or interventions.