Kristine Owns All of the Stock of a C Corporation

question 27

Multiple Choice

Kristine owns all of the stock of a C corporation which owns the following assets:

* Potential § 1245 recapture of $30,000.
** Straight-line depreciation was used.
Her adjusted basis for her stock is $270,000.Calculate Kristine's recognized gain or loss and classify it as capital or ordinary if she sells her stock for $470,000.

• A)$200,000 ordinary income.
• B)$200,000 capital gain.
• C)$100,000 ordinary income and $100,000 capital gain.
• D)$90,000 ordinary income and $110,000 capital gain.
• E)None of the above.

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Definitions:

Wellbeing

Refers to a state of being comfortable, healthy, or happy, encompassing both physical and psychological health.

Decentration

The cognitive ability to consider multiple aspects of a situation simultaneously, crucial for developing logic in children.

Egocentric

A developmental stage where an individual is unable to differentiate between their own perspective and that of others, often seen in early childhood.

Concrete-Operational Children

A stage in Piaget's theory of cognitive development (ages 7-12) where children gain the ability to think logically about concrete events.