Rick Transferred the Following Assets and Liabilities to Warbler Corporation

question 108

Multiple Choice

Rick transferred the following assets and liabilities to Warbler Corporation. In return, Rick received $75,000 in cash plus 90% of Warbler Corporation's only class of stock outstanding (fair market value of $225,000) .

• A)Rick has a recognized gain of $60,000.
• B)Rick has a recognized gain of $75,000.
• C)Rick's basis in the stock of Warbler Corporation is $270,000.
• D)Warbler Corporation has the same basis in the assets received as Rick does in the stock.
• E)None of these.

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Definitions:

Sleep Habits

Practices or routines that are associated with the timing, duration, and quality of sleep.

Office Work

Tasks and activities that are carried out in an office environment, typically involving clerical, administrative, or managerial duties.

Sleep Habits

The practices and routines that are conducive to sleeping well on a regular basis.

Large Meal

A substantial amount of food consumed in one sitting, which can affect digestion and metabolic processes.