R Received $1,000 Cash in Addition to Stock in a Transaction

question 3

True/False

R received $1,000 cash in addition to stock in a transaction that meets the requirements of § 355.If the transaction is a spin-off, R's basis for his stock will increase by $1,000.

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Definitions:

Programmed Decision

A simple, routine matter for which a manager has an established decision rule.

Nonprogrammed Decisions

Decisions made in response to unique, novel, or ill-structured situations that require creativity and judgment, as opposed to routine or standard procedures.

Routine Decisions

Decisions that are made frequently and with a relatively simple process because they involve situations that have occurred before and have predictable outcomes.

Established Procedure

A set method or protocol that has been officially adopted for conducting activities or accomplishing tasks.