Broom Corporation Transfers Assets with an Adjusted Basis of $300,000

question 75

Multiple Choice

Broom Corporation transfers assets with an adjusted basis of $300,000 and an FMV of $400,000 to Docker Corporation in exchange for $400,000 of Docker Corporation stock as part of a tax-free reorganization.The Docker stock had been purchased from its shareholders one year earlier for $350,000.How much gain do Broom and Docker Corporations recognize on the asset transfer?

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Definitions:

Genetic Basis

The underlying genetic factors that contribute to the development of a particular trait or disorder.

Alzheimer's Disease

A chronic neurodegenerative disorder characterized by memory loss, cognitive decline, and personality changes, leading to the inability to perform daily activities.

Down Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, associated with physical growth delays and mild to moderate intellectual disability.

Beta-amyloid

A fibrous protein that accumulates abnormally in the brains of patients with Alzheimer's disease, forming plaques that disrupt cell function.