Which of the Following Statements Best Describes the Tax Consequences

question 19

Multiple Choice

Which of the following statements best describes the tax consequences that arise from a contribution of capital to a corporation by an existing shareholder?

• A)The shareholder recognizes gain and loss on the transfer and the corporation's basis in the property transferred equals its fair market value.
• B)The shareholder does not recognize gain and loss on the transfer and the corporation's basis in the property transferred equals the shareholder's basis in the property transferred.
• C)The shareholder recognizes gain and loss on the transfer and the corporation's basis in the property transferred equals the shareholder's basis in the property transferred.
• D)The shareholder does not recognize gain and loss on the transfer and the corporation's basis in the property transferred equals zero.

---

Definitions:

Cool Colors

Colors perceived as calming and soothing, often associated with shades of blue, green, and purple.

Appropriate Level

The suitable or recommended intensity or degree of a condition, activity, or measurement.

Cool And Warm

Terms used to describe the perceived temperature or tones, often in relation to colors, atmospheres, or physical sensations.

First Impression

The initial perception or judgment one makes about something or someone upon first encountering them, often lasting and difficult to change.