Cherie Transfers Two Assets to a Newly-Created Corporation

question 92

Multiple Choice

Cherie transfers two assets to a newly-created corporation. The first asset has an adjusted basis of $40,000 and an FMV of $50,000. The second asset has an adjusted basis of $35,000 and an FMV of $25,000. Cherie receives stock with an FMV of $66,000 and $9,000 cash. Cherie must recognize a gain of

• A)$10,000.
• B)$6,000.
• C)$5,000.
• D)$4,000.

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Definitions:

Supplemental Caregiving

Additional care provided to a child by someone other than the primary caregiver, often to support the family or developmental needs.

Nuclear Families

A family unit consisting of two parents and their children living together as a single household, considered a traditional family structure.

Family Structure

The composition and organization of a family unit, including the number of members, their relationships, and roles within the household.

Whitings' Studies

Refers to research done by Beatrice and John Whiting on cultural influences on child development and behavior across different societies.