Rhonda and Marta Form Blue Corporation

question 68

Multiple Choice

Rhonda and Marta form Blue Corporation. Rhonda transfers land (basis of $55,000 and fair market value of $180,000) for 50 shares plus $20,000 cash. Marta transfers $160,000 cash for 50 shares in Blue Corporation.

• A) Rhonda's basis in the Blue Corporation stock is $55,000.
• B) Blue Corporation's basis in the land is $55,000.
• C) Blue Corporation's basis in the land is $180,000.
• D) Rhonda recognizes a gain on the transfer of $125,000.
• E) None of the above.

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Definitions:

Perception

The process of interpreting and understanding sensory information from the environment.

Stimuli

External or internal changes that influence the behavior or responses of an organism.

Specialized Cells

Cells differentiated to perform specific functions in an organism, such as muscle cells for movement.

Receptors

Specialized cells or protein molecules in the body that receive and respond to chemical signals, such as neurotransmitters or hormones.