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:

New Drugs

Refers to medications or therapies that have recently been developed and introduced to the market, typically after undergoing rigorous testing and approval processes.

Manufacture

The process of making goods on a large scale using labor and machines, typically within a factory setting.

Industry

A group of companies that are related based on their primary business activities.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.