This Year X, Y, and Z Formed a New Corporation

question 57

Multiple Choice

This year X, Y, and Z formed a new corporation.X and Y contributed appreciated property for 50 percent of the stock.Z contributed property and services for the remaining 50 percent of the stock.Of the amounts given below, what is the minimum amount of stock that Z must receive for his property contribution if the exchanges of × and Y are to be nontaxable.

• A)8 percent
• B)10 percent
• C)20 percent
• D)30 percent
• E)50 percent

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Definitions:

Milgram Experiment

A psychological experiment conducted by Stanley Milgram in the 1960s to study obedience to authority, where participants were instructed to administer electric shocks to another person.

Stanford University Prison Experiment

A psychological study conducted by Philip Zimbardo in 1971 at Stanford University, where students were assigned roles of prisoners and guards to explore the effects of perceived power.

Generalization

Drawing a conclusion about a certain characteristic of a population based on a sample from it.

Logical Support

The provision of reasons or evidence to justify a claim or argument.