Mitchell and Lane Form Green Corporation

question 85

Multiple Choice

Mitchell and Lane form Green Corporation. Mitchell transfers property (basis of $105,000 and fair market value of $90,000) while Lane transfers land (basis of $8,000 and fair market value of $75,000) and $15,000 of cash. Each receives 50% of Green Corporation's stock (total value of $180,000) . As a result of these transfers:

• A)Mitchell has a recognized loss of $15,000, and Lane has a recognized gain of $67,000.
• B)Neither Mitchell nor Lane has any recognized gain or loss.
• C)Mitchell has no recognized loss, but Lane has a recognized gain of $15,000.
• D)Green Corporation will have a basis in the land of $23,000.
• E)None of the above.

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Definitions:

Newborns

Infants who are within the first few weeks of life after birth.

Hand Skills

Abilities involving the use of the hands, including fine motor skills such as writing, grasping, and manipulating objects.

Proximodistal Development

A pattern of growth and development in children where physical and motor skills progress from the center of the body outward to the extremities.

Growth Spurt

A rapid increase in physical growth, often experienced during puberty, characterized by accelerated growth in height and weight.