Mario and Lupita Form a Corporation in a Transaction Coming

question 13

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of

• A)$0.
• B)$50,000.
• C)$100,000.
• D)$80,000.

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Definitions:

Allele Frequencies

A measure of how common a particular genetic variant (allele) is within a population's gene pool.

Genetic Stasis

A period or state in which the genetic composition of a population remains relatively unchanged over time.

Polymorphism

The presence of two or more distinct forms (variations) of a gene or trait within a population.

Random Mating

A mating system in which all individuals in a population have an equal opportunity to mate with any other member of the opposite sex.