The Following Information Is Available for an S Corporation X Buys Y's One-Third of the Shares for $100,000

question 40

Multiple Choice

The following information is available for an S corporation: $\begin{array} { l }&\text { Basis }&FMV\\\text { Cash }&\$120,000&\$120,000\\\text { Equipment }&160,000&160,00\\\text { Equity accounts }&\$180,000&\$300,000\end{array}$
X buys Y's one-third of the shares for $100,000.Y's basis is $60,000, and she recognizes $40,000 gain.What is X's share of the inside basis in the corporation's net assets?

• A)$60,000
• B)$140,000
• C)$100,000
• D)$160,000

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Definitions:

Body Temperature

A measure of the body's ability to generate and release heat, indicating its metabolic rate and a critical aspect of homeostasis.

Sleep-Waking Cycles

The natural, cyclic alternation between sleep and wakefulness, regulated by the body's internal biological clock and influenced by environmental factors.

Eye Movements

Eye movements are voluntary or reflexive movements of the eyes that enable visual tracking and scanning of the environment, crucial for tasks such as reading and driving.

Limbic System

A complex system of nerves and networks in the brain, involved with instinct and mood. It regulates basic emotions and drives.