Apple Corporation and Banana Corporation File Consolidated Returns

question 12

Multiple Choice

Apple Corporation and Banana Corporation file consolidated returns.In January 2007,Apple sold Banana property with a basis of $120,000 for its fair value of $150,000.Banana sold the property to an unrelated party in April 2008 for $200,000.What amount of gain should be reported for these transactions in the consolidated returns for 2011 and 2012?

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Definitions:

Punishing

The act of imposing a penalty or negative consequence for an undesirable action or behavior, with the intent of reducing or eliminating that behavior.

Classical Conditioning

A learning process that occurs when two stimuli are repeatedly paired; a response that is at first elicited by the second stimulus is eventually elicited by the first stimulus alone.

Respondent Behavior

Behavior that is elicited by a specific stimulus and is part of the classical conditioning process, such as salivating when smelling food.

Substituting Stimulus

A stimulus that is used to replace another, prompting a similar response in a conditioning experiment or situation.