Carl and Ben Form Eagle Corporation

question 31

True/False

Carl and Ben form Eagle Corporation. Carl transfers cash of $50,000 for 50 shares of stock of Eagle. Ben transfers proprietary information with a tax basis of zero and a fair market value of $50,000 for the remaining 50 shares in Eagle. Carl will have a tax basis of $50,000 in his stock in Eagle Corporation and Ben's basis in his stock will be zero.

---

Definitions:

Nucleophilic

Describes a type of chemical species that donates an electron pair to form a chemical bond in reaction, indicating a tendency to seek positively charged or electron-deficient sites.

Basic

Characteristic of substances that have a pH greater than 7, which can accept protons (H+) or donate electrons and are often slippery to the touch.

Secondary Radicals

are reactive intermediates in organic reactions, featuring an unpaired electron on a carbon atom that is bonded to two other carbon atoms.

Stability

The tendency of a chemical substance to maintain its chemical composition and physical state under stated conditions over time.