Jeremy Operates a Business as a Sole Proprietorship

question 108

Multiple Choice

Jeremy operates a business as a sole proprietorship. The proprietorship uses the cash method of accounting. He decides to incorporate and transfers the assets and liabilities of the sole proprietorship to the newly formed corporation in exchange for its stock. The assets, which include $10,000 of accounts receivable with a zero basis, have a basis of $20,000 and an FMV of $40,000. The liabilities include accounts payable of $12,000, which will be deductible when paid, and a note payable on medical equipment of $7,000. Jeremy's basis for his stock is

• A)$40,000.
• B)$20,000.
• C)$13,000.
• D)$8,000.

Understand the importance of designing health care forms and interactions that are inclusive of all sexual orientations and gender identities.

Comprehend how equity-focused quality improvement strategies reduce disparities in health care.

Demonstrate cultural competence through effective communication and actions in a multicultural context.

Employ the RESPECT mnemonic to establish rapport and enhance communication with patients from diverse cultural backgrounds.

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Definitions:

Sunlight

the light and energy that comes from the sun, essential for photosynthesis in plants and influencing Earth's climate and weather.

Second Law

Also known as the second law of thermodynamics, it states that the total entropy of an isolated system can never decrease over time, and is central to the direction of heat transfer and the efficiency of heat engines.

Entropy

A measure of the disorder or randomness in a system, often associated with the second law of thermodynamics.

Disorder

A disruption to regular bodily structure and function, leading to disease or ailment.