MrsLindt Exchanged 212 Shares of Nipher Common Stock for 773

question 29

Multiple Choice

Mrs.Lindt exchanged 212 shares of Nipher common stock for 773 shares of Newland common stock.Her basis in the Nipher stock was $49,200,and the fair market value of the Newland stock was $138,000.Which of the following statements about the exchange is true?

• A)Mrs.Lindt's basis in her Newland stock is $138,000.
• B)Mrs.Lindt recognizes no gain on the exchange because she did not receive any cash.
• C)If the exchange is pursuant to a reorganization of Nipher and Newland,Mrs.Lindt recognizes no gain.
• D)None of the above is true.

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Definitions:

Intrinsic Motivation

the drive to engage in an activity for its own sake, deriving pleasure and satisfaction from the activity itself rather than from any external rewards.

Extrinsic Motivation

Inspiration fueled by outside incentives like financial gain, celebrity status, academic marks, and commendations.

Extrinsic Motivation

A form of motivation that is driven by external rewards such as money, fame, grades, or praise.

Intrinsic Motivation

The drive to engage in activities for their own sake, deriving pleasure and satisfaction from the activity itself rather than from any external rewards.