The City of Portland Gives Data Corporation $60,000 Cash and Land

question 40

Multiple Choice

The City of Portland gives Data Corporation $60,000 cash and land worth $100,000 to induce it to move. The cash was not spent during the 12 months following contribution. The contribution results in

• A)income recognition in the amount of $160,000 to the corporation at the time of contribution.
• B)income recognition in the amount of $60,000 to the corporation 12 months after the time of contribution.
• C)a zero basis in the land and $60,000 ordinary income to the corporation 24 months after the time of contribution if the cash is not used to purchase an asset.
• D)a zero basis in the land and a $60,000 basis reduction in other assets.

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Definitions:

Longissimus Capitis

A muscle in the human body that extends from the upper vertebrae to the skull, aiding in head movement and extension of the vertebral column.

Interspinales

refer to small muscles situated between the spinous processes of the vertebral column, primarily involved in the extension and rotation of the spine.

Multifidus

A series of small muscles that run along the vertebral column, providing stability and supporting spinal movements.

Serratus Anterior

A muscle that originates on the surface of the upper eight or nine ribs and inserts along the entire anterior length of the medial border of the scapula, playing a key role in the movement of the shoulder blade.