A Corporation Distributes Land and the Related Liability in a Nonliquidating

question 89

Multiple Choice

A corporation distributes land and the related liability in a nonliquidating distribution to a shareholder. The land (a capital asset) has an adjusted basis of $70,000, an FMV of $100,000 and is subject to a mortgage of $120,000. The corporation must recognize

• A)a $20,000 capital loss.
• B)a $50,000 capital gain.
• C)a $70,000 capital gain.
• D)no gain or loss.

Distinguish between types of intelligence tests and their purposes, including aptitude vs. achievement tests.

Recognize the practical applications and limitations of intelligence tests in educational and occupational settings.

Grasp the role of environmental and hereditary factors in the development of intelligence.

Understand the impact of managerial decisions on a firm's inventory and cash management.

---

Definitions:

Highly Soluble

Describes a substance that is capable of being dissolved to a great extent in a given solvent.

Ammonia

A compound of nitrogen and hydrogen with the formula NH3, which is a colorless gas with a characteristic pungent smell.

Excretion

The procedure through which an organism's body eliminates metabolic waste materials and poisonous substances.

Insoluble

Not able to be dissolved in a particular solvent, often referring to solids that cannot be dissolved in liquids.