Mario and Lupita Form a Corporation in a Transaction Coming

question 13

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of

• A)$0.
• B)$50,000.
• C)$100,000.
• D)$80,000.

Grasp the concept of insurable interest and its requirement for making beneficiary claims.

Recognize how insurance policies can be cancelled or altered, including the relevance of specific clauses.

Understand the concept of moral hazard in insurance.

Know the process and significance of document exchanges in insurance, including policy issuance and premium payments.