Mario and Lupita Form a Corporation in a Transaction Coming

question 13

Multiple Choice

Mario and Lupita form a corporation in a transaction coming under Sec. 351. Lupita transfers property with an adjusted basis of $150,000 and an FMV of $200,000 in exchange for one-half of the stock. The property has an $80,000 mortgage, which the corporation assumes. Lupita has a recognized gain of

• A)$0.
• B)$50,000.
• C)$100,000.
• D)$80,000.

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Definitions:

Tardive Dyskinesia

A nervous system disorder defined by uncontrollable, repeated bodily motions, frequently due to extended consumption of specific mental health drugs.

Schizophrenia

A mental health anomaly characterized by alterations in cognitive functions, sense perceptions, emotional states, and social engagements.

Obsessive-Compulsive Disorder

A mental health disorder characterized by unwanted repetitive thoughts (obsessions) and actions (compulsions).

Lithium Therapy

A treatment involving the administration of lithium, a mood-stabilizing drug, primarily used to treat bipolar disorder.