On July 1, of the Current Year, Robert Forms the Yew

question 60

Multiple Choice

On July 1, of the current year, Robert forms the Yew Corporation. In exchange for 100 percent of the corporation's stock, Robert contributes land with a fair market value of $100,000. Robert acquired the land 5 years ago at a cost of $30,000. At the date of the contribution, the land is subject to a $10,000 mortgage which the corporation assumes. What is the basis of the land to Yew Corporation?

• A)$20,000
• B)$30,000
• C)$90,000
• D)$100,000
• E)None of these

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Definitions:

Aversion Test

A method used in psychology to assess an individual's aversive reactions to certain stimuli or situations, often to measure preferences or disgust.

Operant Conditioning

A learning method where behaviors are influenced by the consequences that follow them, like rewards or punishments.

Helplessness

A state of being unable to prevent or avoid negative situations, often leading to decreased motivation or depression.

Passivity

The trait of being inactive or submissive, often resulting in the absence of response or resistance.