Chris Transfers Land with a Basis of $40,000 to Webb

question 1

Multiple Choice

Chris transfers land with a basis of $40,000 to Webb Corporation in exchange for 100% of Webb's stock. At the date of the transfer, the land had a $30,000 fair market value. Chris makes an election to reduce his basis in Webb's stock to $30,000, so Webb's basis in the land is

• A)$30,000.
• B)$35,000.
• C)$40,000.
• D)none of the above

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Definitions:

Epimers

Stereoisomers that differ in configuration at exactly one stereogenic center and have the same molecular formula.

Asymmetric Carbons

Carbon atoms bonded to four different groups, leading to chirality or "handedness" in molecules, essential in stereochemistry.

α-D-Ribopyranose

An aldopentose sugar in the pyranose form where the α-configuration at the anomeric carbon is specific to the D-ribose structure.

Ordinal Data

A type of categorical statistical data type in which the order of the values is significant but the difference between each one is not necessarily uniform.