During 2014, Jimmy Incorporates His Data Processing Business

question 11

Multiple Choice

During 2014, Jimmy incorporates his data processing business. Jimmy is the sole shareholder. The following assets are transferred to the corporation: How much gain loss) will Jimmy recognize from the transfer of the assets to the corporation?

• A) $-0-
• B) $4,000)
• C) $8,000
• D) $20,000
• E) $12,000)

---

Definitions:

Optimistic

Exhibiting a positive and hopeful outlook towards future outcomes, expecting the best possible results in any scenario.

Straight Rebuys

Routine purchases of the same products without seeking new information or considering other suppliers.

Caretaker Rep.

The representation or responsibilities of an individual or entity acting in a caretaking role, particularly in maintaining or overseeing property or individuals.

Straight Commission

A compensation method where an employee's income is derived entirely from a percentage of the sales they make, without a base salary.