Rob and Fran Form Bluebird Corporation with the Following Investments

question 15

Multiple Choice

Rob and Fran form Bluebird Corporation with the following investments. Adjusted Basis Fair Market Value From Rob- Cash $400,000 $400,000 From Fran- Land 500,000 440,000 ​ Each receives 50% of Bluebird's stock.In addition,Fran receives cash of $40,000.One result of these transfers is that Fran has a:

• A)Recognized loss of $60,000.
• B)Recognized loss of $20,000.
• C)Basis of $460,000 in the Bluebird stock (assuming Bluebird reduces its basis in the land to $440,000).
• D)Basis of $400,000 in the Bluebird stock (assuming Bluebird reduces its basis in the land to $440,000).
• E)None of the above.

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Definitions:

Humanistic Counseling

A therapeutic approach emphasizing personal growth and self-actualization, viewing individuals as inherently good and capable of making rational choices.

Self-actualization

The realization or fulfillment of one's talents and potentialities, considered as a drive or need present in everyone.

Unconditional Positive Regard

A therapeutic approach that involves showing complete acceptance and support to clients irrespective of their actions or feelings.

Self Disclosure

The process by which individuals share personal, private information or feelings with others, often used in therapeutic and interpersonal contexts to build trust and intimacy.