Carmen and Marc Form Apple Corporation

question 60

Multiple Choice

Carmen and Marc form Apple Corporation. Carmen transfers land that is Sec. 1231 property, with an adjusted basis of $18,000 and an FMV of $20,000 in exchange for one-half of the Apple Corporation stock. Marc transfers equipment that originally costs $28,000 on which he has taken $5,000 in depreciation deductions. The equipment has an FMV of $25,000 and he receives one-half of the stock and a $5,000 short-term note. The transaction meets the requirements of Sec. 351. Which statement below is correct?

• A)There is no recognized gain or loss.
• B)Carmen recognizes a $2,000 Sec. 1231 gain and Marc recognizes $5,000 as ordinary income.
• C)Carmen recognizes a $2,000 Sec. 1231 gain and Marc recognizes a $5,000 Sec. 1231 gain.
• D)Carmen recognizes no gain and Marc recognizes $2,000 as ordinary income.

Recognize the importance of environmental factors and community infrastructure in disease prevention.

Understand the historical development of public health initiatives and their impact on community health.

Analyze the role of government and non-governmental organizations in the advancement of public health.

Identify key figures and their contributions to public health and nursing.

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Definitions:

Exchange Theory

A social psychological and sociological perspective that explains social change and stability as a process of negotiated exchanges between parties.

Group Formation

The process by which people come together to form a group, involving stages of coming together, conflict, norm establishment, and performing a task.

Rewarding

Providing positive reinforcement or incentives for a particular behavior, encouraging its recurrence.

Cohesive

Rephrased: Cohesion within a group indicates how well the members of the group stick together and support each other in pursuit of common objectives.