Max Transfers the Following Properties to a Newly Created Corporation

question 79

Multiple Choice

Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualifies under Sec.351.

Max's recognized gain is

• A)$3,000.
• B)$5,000.
• C)$7,000.
• D)$10,000.

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Definitions:

Mother's Bloodstream

The circulatory system of a pregnant woman through which nutrients, gases, and wastes are exchanged with the fetus.

Inherited

Passed down genetically from parents to their offspring, referring to traits, conditions, or predispositions.

Nipple

A small projection from the breast or mammary glands through which milk is delivered to an infant.

Cheek

The fleshy part of the face below the eye and between the nose and ear, used for expressing emotions and tasting food.