Three Individuals Transferred Property to Newly Formed Triple Inc

question 31

Multiple Choice

Three individuals transferred property to newly formed Triple Inc.in exchange for 1,000 shares of common stock.Mr.Albert transferred assets with a $50,000 tax basis in exchange for 820 shares,Mrs.Billig transferred assets with a $9,000 tax basis in exchange for 148 shares,and Mrs.Crisp transferred $4,000 cash for 32 shares.Based on the FMV of the transferred assets,each Triple share is worth $125.Which of the following is false?

• A)Mr.Albert's tax basis in his 820 shares is $50,000.
• B)Triple Inc.'s tax basis in the assets transferred by Mrs.Billig is $9,000.
• C)Mrs.Crisp's tax basis in her 32 shares is $4,000.
• D)None of the above is false.

Define the significance of information exchange in identifying integrative options.

Recognize the importance of trust in sharing information and accurately conveying positions and needs.

Analyze the role of understanding the other party's motivating factors in reaching mutually beneficial solutions.

Understand the concept and applications of logrolling in negotiation agreements.

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Definitions:

Target Profit

The desired financial gain a company aims to achieve within a specific period through its operations and sales.

Fixed Expense

Charges that stay unchanged with shifts in the amount of products made or the number of sales.

Unit Sales

The measure of the quantity of units of a product sold by a company, often used as an indicator of demand and financial health.

Monthly Target Profit

The profit goal set by a business to achieve within a one-month period.