Bob Transfers Assets with a $100,000 FMV (Basis $60,000)and $70,000

question 46

Multiple Choice

Bob transfers assets with a $100,000 FMV (basis $60,000) and $70,000 of liabilities to a corporation in exchange for 100% of the corporation's stock with a FMV of $30,000.The corporation assumes the $70,000 mortgage.The transfer qualifies under Sec.351.What is Bob's gain recognized on the transfer?

• A)$0
• B)$10,000
• C)$30,000
• D)$40,000

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Definitions:

Stakeholders

People inside or outside of an organization who have the potential to be affected by organizational decisions.

Champions

Individuals within an organization who actively support, advocate for, and ensure the success of a project or innovation.

Converts

Individuals who have changed their beliefs, religion, or viewpoints to align with a different or new set of beliefs or practices.

Doubters

Individuals who are skeptical or have reservations about particular ideas, plans, or projects.