Carl Transfers Land to Cardinal Corporation for 90% of the Stock

question 17

Multiple Choice

Carl transfers land to Cardinal Corporation for 90% of the stock in Cardinal Corporation worth $20,000 plus a note payable to Carl in the amount of $40,000 and the assumption by Cardinal Corporation of a mortgage on the land in the amount of $100,000. The land, which has a basis to Carl of $70,000, is worth $160,000.

• A) Carl will have a recognized gain on the transfer of $90,000.
• B) Carl will have a recognized gain on the transfer of $30,000.
• C) Cardinal Corporation will have a basis in the land transferred by Carl of $70,000.
• D) Cardinal Corporation will have a basis in the land transferred by Carl of $160,000.
• E) None of the above.

Analyze the effects of respect, loyalty, and commitment on team behavior and performance.

Identify characteristics of underbounded and overbounded teams and their implications on team integration.

Define and understand the concept of "faultline" in diverse teams and its potential impact.

Recognize the operational characteristics and strategic importance of different types of teams within organizations.

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Definitions:

Current Liabilities

Obligations that a company must pay within the coming year or within its normal operating cycle, indicating the company's short-term financial responsibilities.

Non-current Liabilities

Long-term financial obligations listed on a company's balance sheet that are not due within the next 12 months, such as loans, leases, and bond repayments.

Canada Pension Plan

A mandatory retirement savings plan to which employees and employers contribute, providing participants with a predictable income upon retirement.

Payroll Register

A payroll register is a record that details the wages, deductions, and net pay of all employees for each pay period.