Individuals Bert and Tariq Form Shark Corporation

question 98

Multiple Choice

Individuals Bert and Tariq form Shark Corporation.Bert transfers equipment with a $290,000 adjusted basis and a $335,000 FMV for 50% of the stock worth $310,000 and a note of Shark Corporation valued at $25,000.Tariq transfers cash of $335,000 in exchange for 50% of the stock of Shark Corporation worth $310,000 and a $25,000 note.Bert's recognized gain is

• A)$0.
• B)$20,000.
• C)$25,000.
• D)$45,000.

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Definitions:

Energy Content

The amount of energy stored in a physical system or substance, often measured in calories or joules.

Primary Source

Original materials or evidence directly related to a topic or event being researched or studied.

Energy

The capacity to do work, existing in various forms such as kinetic, thermal, chemical, and potential energies.

Glucose

A simple sugar that is an important energy source in living organisms and a component of many carbohydrates.