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:

Genuineness

The quality of being open, honest, and sincere in one's dealings with others.

Emotion-focused Therapy

A therapeutic approach that emphasizes the recognition, acceptance, and processing of emotional experiences to facilitate healing and growth.

Cognitive-behavioural Therapy

A psychotherapy approach that treats problems and boosts happiness by modifying dysfunctional emotions, behaviors, and thoughts.

Positive Psychotherapy

Positive Psychotherapy is a therapeutic approach that focuses on a client's strengths and virtues to improve their well-being and treat mental health issues.