J Is a 60 Percent Shareholder in the JS Corporation

question 4

Multiple Choice

J is a 60 percent shareholder in the JS Corporation.In 2009, he sold property to the corporation for $60,000 (basis in his hands of $70,000) .In 2012, the corporation sold the property for $65,000 to an unrelated party.The amount of gain or loss the JS Corporation must recognize in 2012 is

• A)$(5,000)
• B)$0
• C)$5,000
• D)$10,000

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Definitions:

Thermal Infrared Image

An image captured using sensors that detect infrared radiation, reflecting the temperature distribution of an area or object.

Methane

A colorless, odorless flammable gas that is the simplest alkane, used as a fuel and in chemical synthesis.

Electromagnetic Spectrum

A range of electromagnetic radiation that includes visible light, infrared, ultraviolet, X-rays, and other wavelengths.

Infrared Portion

A section of the electromagnetic spectrum with wavelengths longer than those of visible light but shorter than those of microwaves.