Rust Corporation Distributes Property to Its Sole Shareholder, Andre

question 167

Multiple Choice

Rust Corporation distributes property to its sole shareholder, Andre. The property has a fair market value of $350,000, an adjusted basis of $205,000, and is subject to a liability of $220,000. Current E & P is $500,000. With respect to the distribution, which of the following statements is correct?

• A) Rust has a gain of $15,000 and Andre has dividend income of $350,000.
• B) Rust has a gain of $145,000 and Andre's basis in the distributed property is $130,000.
• C) Rust has a gain of $130,000 and Andre's basis in the distributed property is $350,000.
• D) Rust has a gain of $145,000 and Andre has dividend income of $130,000.
• E) None of the above.

Comprehend the function and importance of hypotheses in economic studies.

Understand the distinctions and applications of various economic statements (normative, positive).

Recognize and explain the fallacies in economic reasoning, such as the fallacy of composition and association as causation.

Grasp the scientific method's application in economics, including hypotheses and predictions.

---

Definitions:

Motor Area

A region of the cerebral cortex involved in planning, controlling, and executing voluntary movements.

Body Part

Any section or component of an organism that is identified as an independent unit.

Alpha Rhythm

A pattern of neural oscillations in the frequency range of 8–12 Hz detected in the brain's electrical activity, often associated with a state of relaxation.

Brain Emits

Refers to the various types of signals or substances released by the brain under different physiological conditions.