Which of the Following Scenarios Would Be Appropriate for a Section

question 1

Multiple Choice

Which of the following scenarios would be appropriate for a section 85 rollover?

• A)A shareholder of a corporation wishes to transfer his vehicle to his corporation.The vehicle originally cost $20,000 and has a market value of $12,000.
• B)A corporation wishes to convert land owned by the company into a parking lot.
• C)A taxpayer wishes to transfer property worth $200,000, with an ACB of $90,000, to her corporation.
• D)A corporation is selling its equipment to another corporation and does not wish to own shares in the other corporation.

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Definitions:

Harold Lloyd

A famous American actor and comedian, best known for his roles in silent films during the 1920s.

Clockface

The dial of a clock that displays the time through fixed-numbered dials or moving hands, not typically related to film or media studies.

Skyscraper

A very tall, continuously habitable building of many floors, usually designed for office, commercial, and residential use.

German Expressionist

Pertaining to an early 20th-century movement in art, theatre, and cinema originating in Germany, characterized by its use of symbolic, often abstract visual styles to explore psychological and emotional states.