Robot Corporation Is Liquidated,with Marty Receiving Property Having an Adjusted

question 61

Multiple Choice

Robot Corporation is liquidated,with Marty receiving property having an adjusted basis of $60,000 and an FMV of $90,000.The property is subject to a $80,000 mortgage,which Marty assumes.Marty's basis in the Robot stock surrendered is $50,000.Marty must recognize

• A)a $40,000 loss.
• B)no gain or loss.
• C)a $60,000 gain.
• D)none of the above

---

Definitions:

Operator New

"Operator new" is used in programming languages like C++ to allocate memory for an object or an array of objects on the heap.

Default Constructor

A constructor provided by Java when no other constructors are explicitly defined in a class, initializing objects with default values.

Reference

In programming, a reference is a variable that provides a way to access the data located at a specific address in memory.

Inner Classes

Classes defined within another class, used to logically group classes that are only used in one place.