Henry Transfers Property with an Adjusted Basis of $90,000 and an FMV

question 35

Multiple Choice

Henry transfers property with an adjusted basis of $90,000 and an FMV of $100,000 to a newly-formed corporation in a Sec. 351 exchange. Henry receives stock with an FMV of $80,000 and a short-term note with a $20,000 FMV. Henry's recognized gain is

• A)$0.
• B)$5,000.
• C)$10,000.
• D)$20,000.

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Definitions:

Exhibitionists

Individuals who exhibit a compulsion to display parts of their body, especially the genitals, to an unsuspecting audience, often as an act for sexual gratification.

Shock Reaction

A severe physical or emotional response to a traumatic or surprising event, characterized by rapid heartbeat, faintness, and sometimes unconsciousness.

Sexually Abused

A term describing the experience of being subjected to unwanted sexual activities or contact, often involving coercion or manipulation, and can significantly impact mental and emotional well-being.

Pedophiles

Individuals who are sexually attracted to prepubescent children, a condition considered a psychiatric disorder when it leads to distress or impairs social functioning.