Max Transfers the Following Properties to a Newly Created Corporation

question 9

Multiple Choice

Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualifies under Sec.351. Max's recognized gain is

• A)$3,000.
• B)$5,000.
• C)$7,000.
• D)$10,000.

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Definitions:

Authoritarian Government

A form of government characterized by strong central power and limited political freedoms, essentially synonymous with authoritarian states.

Egalitarianism

A belief in human equality, especially with respect to social, political, and economic rights and privileges.

Collective Ownership

The holding of property or assets by all members of a group or community, sharing both rights and responsibilities.

Direct Voting

A voting system where citizens vote on laws, policies, or leaders directly, without intermediaries or representatives.