Felix Transfers Land with a FMV of $900,000 to a Newly

question 59

Multiple Choice

Felix transfers land with a FMV of $900,000 to a newly formed corporation in exchange for all of the stock. The land has a basis of $300,000 and debt of $500,000. The basis of the land, in the hands of the corporation is:

• A) $300,000.
• B) $500,000.
• C) $600,000.
• D)$900,000.

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Definitions:

Multidimensional Development

The concept that human development involves multiple aspects—physical, cognitive, emotional, and social—that interact and influence each other.

Multidirectional Development

The concept that human development occurs in different directions, indicating varying changes (both gains and losses) throughout the lifespan.

Changing Resource Allocations

The process of adjusting how resources, such as time, money, or personnel, are distributed or utilized in response to different conditions or priorities.

Developmental Context

The combination of biological, psychological, and social factors that affect an individual's growth and development over time.