F and G Formed a Corporation on March 1 This

question 58

Multiple Choice

F and G formed a corporation on March 1 this year.F transferred equipment worth $40,000 (basis $15,000) in exchange for 40 shares of stock, and performed services worth $10,000 in exchange for 10 shares of stock.In exchange for 50 shares of stock, G contributed land worth $70,000 (basis $9,000) subject to a mortgage of $20,000, which the corporation assumed.What is F's total basis in the stock that he received?

• A)$15,000
• B)$40,000
• C)$25,000
• D)$50,000
• E)None of the above

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Definitions:

Congress

The national legislative body of a country, particularly referred to in the context of the United States, consisting of the House of Representatives and the Senate.

Declaring War

The formal act by which a sovereign state announces and initiates a state of war against another sovereign state or entity.

Filibuster

A legislative tactic used to delay or block decisions by speaking for an extended period or by other procedural means.

Unlimited Debate

A procedure, notably in the U.S. Senate, that allows for extended discussion on a bill without a fixed time limit, often related to filibustering.