B, C, and D Each Own 30 Shares of the 90

question 56

Multiple Choice

B, C, and D each own 30 shares of the 90 shares of stock outstanding of We-Cater-To-You Corporation.This year B contributed a van previously used in his proprietorship worth $10,000 (basis $12,000) in exchange for 10 shares of stock.R will

• A)Recognize no gain or loss on the exchange and have a basis in the stock received of $10,000
• B)Recognize a $2,000 loss on the exchange and have a basis in the stock received of $10,000
• C)Recognize no gain or loss on the exchange and have a basis in the stock received of $12,000
• D)Recognize a $2,000 loss on the exchange and have a basis in the stock received of $12,000

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Definitions:

Risk-Averse Cultures

Societies or organizational environments that prefer to minimize risks, leading to more cautious decision-making and often avoiding actions that could lead to uncertain outcomes.

Wait-And-See

A strategy where one delays making a decision or taking action to gather more information or see how a situation unfolds.

Individualistic Cultures

Societies that prioritize the needs and desires of the individual over those of the group.

Collective

Pertaining to or shared by two or more individuals or entities, often emphasizing group actions and outcomes over individual ones.