Hazel Transferred the Following Assets to Starling Corporation

question 16

Multiple Choice

Hazel transferred the following assets to Starling Corporation. Adjusted Basis Fair Market Value Cash $120,000 $120,000 Machinery 48,000 36,000 Land 108,000 144,000 ​ In exchange,Hazel received 50% of Starling Corporation's only class of stock outstanding.The stock has no established value.However,all parties believe that the value of the stock Hazel received is the equivalent of the value of the assets she transferred.The only other shareholder,Rick,formed Starling Corporation five years ago.

• A)Hazel has no gain or loss on the transfer.
• B)Starling Corporation has a basis of $48,000 in the machinery and $108,000 in the land.
• C)Starling Corporation has a basis of $36,000 in the machinery and $144,000 in the land.
• D)Hazel has a basis of $276,000 in the stock of Starling Corporation.
• E)None of the above.

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Definitions:

Motor Neurons

Nerve cells that transmit signals from the central nervous system to muscles or glands, inducing movement or action.

Central Nervous System

The Central Nervous System (CNS) consists of the brain and spinal cord, playing a crucial role in processing and sending out neural signals.

Nerve Impulses

Electrical signals that travel along nerves, allowing for communication between the nervous system and other parts of the body.

Neurons

are the basic working units of the brain and nervous system, responsible for receiving, processing, and transmitting information through electrical and chemical signals.