If an Individual Transfers an Ongoing Business to a Corporation

question 119

Multiple Choice

If an individual transfers an ongoing business to a corporation in a Sec. 351 exchange, the individual must recognize any realized gain

• A)only if the adjusted basis of the property transferred is less than the FMV of the stock received.
• B)if the transferor receives property other than stock.
• C)if the FMV of the property exchanged exceeds the FMV of the stock received.
• D)both A and B above

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Definitions:

CPI

An indicator called the Consumer Price Index scrutinizes the total weighted average costs of a series of consumer goods and services, embracing sectors like food, transportation, and healthcare.

Purchasing Power

The valuation of a currency based on the volume of goods or services it can buy per unit.

CPI

The Consumer Price Index, a tool that inspects the generalized weighted average prices of a multitude of consumer services and goods, such as food, transportation, and medical services.

Consumer Price Index

A measure that examines the weighted average of prices of a basket of consumer goods and services, used as an indicator of inflation.