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.

---

Definitions:

Huntington Disease

A hereditary disorder caused by a genetic mutation, leading to the progressive degeneration of nerve cells in the brain.

Recessive Gene

A genetic trait that is expressed in an organism's phenotype only if two copies of the gene are present, but is masked if a dominant gene is present.

Dominant Gene

A gene that expresses its phenotypic trait even when only one copy is present in the genotype.

Recessive

A genetic term describing an allele that produces its characteristic phenotype only when its paired allele is identical.