During 2017,Jimmy Incorporates His Data Processing Business

question 21

Multiple Choice

During 2017,Jimmy incorporates his data processing business.Jimmy is the sole shareholder.The following assets are transferred to the corporation:
Cash $2,000
Computer Equipment:
Fair market value 20,000
Adjusted basis 12,000
Original cost 24,000
Furniture:
Fair market value 20,000
Adjusted basis 32,000
Original cost 64,000
​
How much gain (loss) will Jimmy recognize from the transfer of the assets to the corporation?

• A)$-0-
• B)$(4,000)
• C)$8,000
• D)$20,000
• E)$(12,000)

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Definitions:

Run-on Sentence

A grammatically faulty sentence in which two or more main clauses are joined without a conjunction or proper punctuation.

Independent Clauses

Phrases or sentence fragments that can independently represent complete ideas as they possess both a verb and a subject.

Direct Strategy

A communication approach that involves presenting the main idea or message at the beginning, followed by supporting details.

Dependent Clauses

Groups of words containing a subject and a verb but cannot stand alone as complete sentences.