Amos Contributes Land with an Adjusted Basis of $70,000 and a Fair

question 18

True/False

Amos contributes land with an adjusted basis of $70,000 and a fair market value of $100,000 to White, Inc., an S corporation, in exchange for 50% of the stock of White, Inc. Carol contributes cash of $100,000 for the other 50% of the stock. If White later sells the land for $110,000, $35,000 [$30,000 + 50%($10,000)] is allocated to Amos and $5,000 ($10,000 ´ 50%) is allocated to Carol.

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Definitions:

Horney

Refers to Karen Horney, a psychoanalytic psychologist known for her theories on neurotic personality development and the concept of "basic anxiety."

Self-Realization

The process of fully understanding and realizing one's own potential and abilities.

Horney

Karen Horney was a German-American psychoanalyst known for her theory of neurotic needs and the concept of womb envy, countering Sigmund Freud's emphasis on penis envy.

Neurotic Trends

Patterns of thought, behavior, or emotion that are dysfunctional or maladaptive, often related to anxiety or stress.