Wally Contributes Land Adjusted Basis of $30,000; Fair Market Value

question 91

True/False

Wally contributes land adjusted basis of $30,000; fair market value of $100,000) to an S corporation in a transaction that qualifies under § 351. The corporation subsequently sells the land for $120,000, recognizing a gain of $90,000 $120,000 - $30,000). If Wally owns 30% of the stock, $76,000 [$70,000 + 30%$20,000)] of the $90,000 recognized gain is allocated to Wally.

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Sales Increase

An upward movement in the quantity sold or the revenue generated from the sale of a product or service over a specific period.

Beta

A measurement of a stock's volatility compared to the overall market volatility, indicating its relative risk.

Annualized Return

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Intrinsic Value

The actual, fundamental value of an asset, based on underlying perceptions of its true value including aspects of both tangible and intangible factors.