Julian Transferred 100 Percent of His Stock in Lemon Company

question 110

Multiple Choice

Julian transferred 100 percent of his stock in Lemon Company to Apricot Corporation in a Type B stock-for-stock exchange. In exchange, he received stock in Apricot with a fair market value of $200,000. Julian's tax basis in the Lemon stock was $400,000. What amount of loss does Julian recognize in the exchange and what is his basis in the Apricot stock he receives?

• A)$200,000 loss recognized and a basis in Apricot stock of $200,000
• B)No loss recognized and a basis in Apricot stock of $400,000
• C)$200,000 loss recognized and a basis in Apricot stock of $400,000
• D)No loss recognized and a basis in Apricot stock of $200,000

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Definitions:

Communication Styles

Different methods or preferences for exchanging information, including verbal, non-verbal, and written communication.

Directive Style

A leadership approach focused on providing clear instructions, guiding tasks, and setting standards for performance.

Emotive Style

A communication approach that emphasizes expressing feelings and emotions to connect with others.

Reflective Style

A way of thinking and processing information that involves careful consideration of past experiences and actions to inform future decisions.