Chris Transfers Land with a Basis of $40,000 to Webb

question 1

Multiple Choice

Chris transfers land with a basis of $40,000 to Webb Corporation in exchange for 100% of Webb's stock. At the date of the transfer, the land had a $30,000 fair market value. Chris makes an election to reduce his basis in Webb's stock to $30,000, so Webb's basis in the land is

• A)$30,000.
• B)$35,000.
• C)$40,000.
• D)none of the above

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Definitions:

Drug Use

The consumption of legal or illegal substances for their psychoactive effects, often leading to dependence or addiction.

Adolescents

Refers to young people in the transitional phase of growth and development between childhood and adulthood, typically between ages 13 and 19.

Harm Reduction Programs

Initiatives aimed at minimizing the negative consequences associated with certain behaviors, such as drug use or sexual activity, without necessarily stopping the behavior.

Substance Use

involves the consumption of drugs or alcohol, especially in a way that is illegal or harmful.