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:

REM Behavior Disorder

A sleep disorder in which individuals physically act out vivid, often unpleasant dreams with vocal sounds and sudden, violent arm and leg movements during REM sleep.

Narcolepsy

A chronic sleep disorder characterized by overwhelming daytime drowsiness and sudden attacks of sleep.

Sleep Apnea

A disorder characterized by pauses in breathing or periods of shallow breathing during sleep.

Somnambulism

Is the medical term for sleepwalking, which involves walking or performing other complex behaviors while in a state of sleep.