Paper Corporation Adopts a Plan of Reorganization and Exchanges 1,000

question 35

Multiple Choice

Paper Corporation adopts a plan of reorganization and exchanges 1,000 shares of its voting stock and $50,000 in cash for Chase Corporation's assets having a $200,000 adjusted basis and a $275,000 FMV. Chase Corporation is subsequently liquidated. What is Paper Corporation's basis in the assets acquired in the exchange?

• A)$200,000
• B)$250,000
• C)$275,000
• D)$50,000

---

Definitions:

Cerebrum

The largest part of the brain, responsible for voluntary motor functions, sensory information processing, language, cognitive abilities, and emotional regulation.

Hemispheres

The two halves of the brain (right and left) that control different functions and processes in the human body.

Controls

Variables that are kept constant or monitored in order to assess the effect of experimental treatments in scientific studies.

Axon

A long, slender projection of a nerve cell that typically conducts electrical impulses away from the neuron's cell body.