Dick, a Cash Basis Taxpayer, Incorporates His Sole Proprietorship ? with Respect to This Transaction:
A)Orange Corporation's Basis in the Following

question 113

Multiple Choice

Dick, a cash basis taxpayer, incorporates his sole proprietorship.He transfers the following items to newly created Orange Corporation. $\begin{array}{lrr} &&\text { Fair Market }\\& \text { Adjusted Basis } & \text { Value } \\\text { Cash } & \$ 10,000 & \$ 10,000 \\\text { Buil ding } & 120,000 & 175,000 \\\text { Mortgage payable (secured by the building and held } & 135,000 & 135,000\\\text { for } 15 \text { years) }\end{array}$ ? With respect to this transaction:

• A)Orange Corporation's basis in the building is $120,000.
• B)Dick has no recognized gain.
• C)Dick has a recognized gain of $5,000.
• D)Dick has a recognized gain of $10,000.
• E)None of the above.

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Definitions:

Blood Pressure

The pressure applied by flowing blood against the walls of the arteries, used to evaluate the health of the heart and blood vessels.

Pulmonary Infections

Infections affecting the lungs, which can be caused by bacteria, viruses, fungi, or parasites, leading to conditions such as pneumonia.

Smoking

The act of inhaling and exhaling the smoke produced by burning tobacco or substances in cigarettes, pipes, or cigars, which is a major health risk.

Respiratory Functions

Respiratory functions refer to the various physiological processes involved in the intake of oxygen and the release of carbon dioxide by the respiratory system.