F and G Formed a Corporation on March 1 This

question 50

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 amount of gross income must F recognize due to the incorporation transaction?

• A)$0
• B)$10,000
• C)$25,000
• D)$35,000
• E)None of the above

Understand how the process of journalizing differs from posting.

Identify common errors in the trial balance and their rectification.

Learn about the role and structure of the chart of accounts.

Understand basic accounting concepts such as debits, credits, and the normal balance of various types of accounts.

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Definitions:

Technological Forecasts

Long-term forecasts concerned with the rates of technological progress.

Business Cycle

The natural rise and fall of economic growth that occurs over time, including periods of prosperity, recession, depression, and recovery.

Inflation Rates

The rate at which the general level of prices for goods and services is rising, eroding purchasing power.

Money Supplies

The total amount of monetary assets available in an economy at a specific time, including cash, coins, and balances held in bank accounts.