Jeremy Transfers Sec

question 94

Multiple Choice

Jeremy transfers Sec. 351 property acquired three years earlier having a $100,000 basis and a $160,000 FMV to Jeneva Corporation. Jeremy receives all 200 shares of Jeneva stock having a $140,000 FMV, and a $20,000 90-day Jeneva note. What is Jeremy's recognized gain?

• A)$0
• B)$60,000
• C)$20,000
• D)$160,000

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Definitions:

Moro Reflex

A startle reflex seen in newborns, which involves flinging the arms outwards and then hugging themselves, in response to a feeling of falling or loud noises.

Palmer Grasp

An infantile reflex that involves the curling of fingers around an object placed in the palm of the hand.

Rooting

An instinctual reflex in babies that prompts them to turn their head toward a touch on their cheek or mouth area, assisting in breastfeeding.

Western Industrialized

Referring to countries in the Western Hemisphere that have highly developed economies, industries, and infrastructures.