This Year J and K Formed New Corporation In Addition the Building Was Subject to a Mortgage of Assets

question 44

Multiple Choice

This year J and K formed New Corporation.J transferred the assets below to New in exchange for stock. $\begin{array} { l }&\text { Adjusted Basis }&\text { Fair Market Value }\\\text { Building }&\$45,000&\$90,000\\\text { Equipment }&100,000&110,000\\\text { Total }&\$145,000&\$200,000\end{array}$
In addition the building was subject to a mortgage of $50,000.J received stock worth $150,000 on the exchange.Assume that the transfer meets the requirements of § 351.J's basis in his stock is

• A)$145,000
• B)$95,000
• C)$100,000
• D)$150,000
• E)Some other amount

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Definitions:

Weak Electrolyte

A substance that partially dissociates into ions in solution, thus conducting electricity weakly.

Partially Forms

Entities or compounds that are not fully developed or completely produced in a chemical process.

Electrolytes

Substances that dissociate into ions in solution, capable of conducting electricity.

Electrolytes

Substances that dissolve in water to produce a solution that conducts electricity due to the movement of ions.