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:

Diane Halpern

An American psychologist known for her research in critical thinking, sex differences in cognitive abilities, and psychology of gender.

Cultural Expectations

The shared norms and values that dictate acceptable behavior and beliefs within a specific culture or society.

Stereotypes

Widely held beliefs that people have certain characteristics simply because of their membership in a particular group.

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The principal class of male sex hormones.