F and G Formed a Corporation on March 1 This

question 24

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.Assuming G recognized $27,500 of gain on the exchange, the corporation's basis for the land received is

• A)$9,000
• B)$70,000
• C)$36,500
• D)$50,000

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Definitions:

Freud

An Austrian neurologist named Sigmund Freud, who established psychoanalysis, a technique to address mental disorders through conversations between a psychoanalyst and their patient.

Behaviourism

A theory of learning which states that all behaviors are acquired through conditioning, emphasizing the importance of observable actions over internal phenomena like thoughts and feelings.

Consequences

The outcomes or effects that follow from a particular action or condition, either positive or negative.

Skinner

B.F. Skinner, an influential American psychologist, known for his work in behaviorism and the development of the operant conditioning theory.