Max Transfers the Following Properties to a Newly Created Corporation

question 96

Multiple Choice

Max transfers the following properties to a newly created corporation for $90,000 of stock and $10,000 cash in a transaction that qualifies under Sec.351. Max's recognized gain is

• A) $3,000.
• B) $5,000.
• C) $7,000.
• D) $10,000.

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Definitions:

Accountable

Being responsible or answerable for actions or decisions, either in a personal or professional context.

Deindividuation

A psychological state of decreased self-evaluation and decreased evaluation apprehension causing antisocial behavior, often occurring within groups.

Groupthink

A psychological phenomenon where the desire for harmony or conformity within a group results in an irrational or dysfunctional decision-making outcome.

Group Polarization

The tendency for a group to make decisions that are more extreme than the initial inclination of its members.