Individuals Opal and Ben Form OB Corporation

question 94

Multiple Choice

Individuals Opal and Ben form OB Corporation.Opal transfers land and a building with a $550,000 adjusted basis and a $625,000 FMV in exchange for 50% of the stock of the OB Corporation worth $610,000 and a $15,000 note.Ben transfers cash of $625,000 for 50% of the stock worth $610,000 and a note of the OB Corporation valued at $15,000.Opal's basis in the stock received is

• A)$550,000.
• B)$560,000.
• C)$610,000.
• D)$625,000.

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Definitions:

A/C Circuit

An alternating current (A/C) circuit, in which the flow of electric charge periodically reverses direction, typically used in household and industrial power.

Condenser

In automotive contexts, a heat exchanger component in the air conditioning system that cools and condenses refrigerant gas back into a liquid.

Retrofitting

The process of adding new technology or features to an existing system, machine, or building to improve its functionality or performance.