B Owns 85 Percent of the Stock of D Corporation

question 36

True/False

B owns 85 percent of the stock of D Corporation, and C owns the remaining 15 percent.The corporation has been in operation for three years.During the year, B transferred land worth $20,000 (basis $11,000) to the corporation for additional shares, increasing his ownership to 88 percent.B is not required to recognize gain on the transfer.

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Definitions:

Trip Planners

Tools or services that assist individuals in organizing travel itineraries and making reservations for lodging, transportation, and activities.

Flight Trackers

Refers to tools or applications that provide real-time information about the status of flights, including departure and arrival times, delays, and the current location of an aircraft.

Showrooming

Customers visit a store to touch, feel, and even discuss a product’s features with a sales associate, and then purchase it online from another retailer at a lower price.

Sales Associate

An employee in a retail or sales setting responsible for assisting customers, making sales, and maintaining the presentation of goods.