Amos Contributes Land with an Adjusted Basis of $70,000 and a Fair

question 48

True/False

Amos contributes land with an adjusted basis of $70,000 and a fair market value of $100,000 to White,Inc.,an S corporation,in exchange for 50% of the stock of White,Inc.Carol contributes cash of $100,000 for the other 50% of the stock.If White later sells the land for $110,000,$35,000 [$30,000 + 50%($10,000)] is allocated to Amos and $5,000 ($10,000 * 50%)is allocated to Carol.

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Definitions:

Chromatin

The complex of DNA and proteins, mainly histones, that forms chromosomes within the nucleus of eukaryotic cells.

Visible Chromosomes

Chromosomes that are condensed and made visible under a microscope during cell division.

Sister Chromatids

Identical copies of a chromosome, connected by a centromere, formed during DNA replication and present until they are separated into two daughter cells during cell division.

Cohesin Proteins

Proteins that hold sister chromatids together, ensuring they are correctly segregated during cell division.