Individuals Opal and Ben Form OB Corporation

question 94

Multiple Choice

Individuals Opal and Ben form OB Corporation.Opal transfers land and a building with a $550,000 adjusted basis and a $625,000 FMV in exchange for 50% of the stock of the OB Corporation worth $610,000 and a $15,000 note.Ben transfers cash of $625,000 for 50% of the stock worth $610,000 and a note of the OB Corporation valued at $15,000.Opal's basis in the stock received is

• A)$550,000.
• B)$560,000.
• C)$610,000.
• D)$625,000.

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Definitions:

Master Gland

A term often used to describe the pituitary gland due to its central role in regulating other glands and many body functions.

Hypothalamus

A small region at the base of the brain crucial for hormone production and regulation of essential bodily functions such as temperature, hunger, and sleep.

Axon

A long, thin part of a neuron that transmits impulses to other neurons from bulb-shaped structures called axon terminals or terminal buttons.

Dendrite

Branch-like extensions of a neuron that receive signals from other nerve cells and are crucial for transmitting electrical messages to the neuron's cell body.