Apple Corporation and Banana Corporation File Consolidated Returns

question 89

Multiple Choice

Apple Corporation and Banana Corporation file consolidated returns.In January 2007,Apple sold Banana property with a basis of $120,000 for its fair value of $150,000.Banana sold the property to an unrelated party in April 2008 for $200,000.What amount of gain should be reported for these transactions in the consolidated returns for 2011 and 2012?

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Definitions:

Alfred Hershey

An American bacteriologist and geneticist, awarded the Nobel Prize in Physiology or Medicine in 1969 for his work on the genetics of viruses, including the famous Hershey-Chase experiment.

Martha Chase

An American geneticist who, along with Alfred Hershey, performed experiments confirming that DNA is the genetic material of life.

Experiments

Carefully designed procedures to test hypotheses, establish cause and effect, or discover new phenomena under controlled conditions.

Phosphodiester Bonds

chemical bonds that link nucleotides together in DNA and RNA, forming the backbone of these molecules.