During the Year, M, N, and O Formed a New

question 38

Multiple Choice

During the year, M, N, and O formed a new corporation.Solely in exchange for stock, M and N contributed appreciated property, while O contributed services.The exchanges of M and N will be nontaxable if

• A)O receives 30 percent of the stock.
• B)O receives 80 percent of the stock.
• C)O receives 10 percent of the stock.
• D)M and N receive 50 percent of the stock.
• E)None of the above

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Definitions:

Active Avoidance

A learning process in which an organism learns to perform a behavior to prevent or avoid an unpleasant stimulus.

Negative Reinforcement

The strengthening of a behavior by removing or avoiding a negative outcome or aversive stimulus when the behavior is performed.

Escape Response

A behavior aimed at moving away from or avoiding an unpleasant stimulus or situation, often studied in the context of aversive conditioning.

Passive Avoidance

A learning process in which an individual learns to refrain from engaging with a negative stimulus to avoid an unpleasant outcome.