During 2016,Jimmy Incorporates His Data Processing Business

question 47

Multiple Choice

During 2016,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
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What will be the basis of the assets to the corporation after the transfer?
​
Computer Equipment Furniture

• A)$20,000 $20,000
• B)$12,000 $20,000
• C)$20,000 $32,000
• D)$12,000 $32,000
• E)$24,000 $64,000

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Definitions:

Public Debt

The total amount owed by the federal government to the owners of government securities; equal to the sum of past government budget deficits less government budget surpluses.

Regulatory Capture

A situation where regulatory agencies are dominantly influenced by the industries they are charged with regulating, often leading to biased decisions favoring industry.

Government Agency

A permanent or semi-permanent organization in the machinery of government that is responsible for the oversight and administration of specific functions, such as an agency of the federal or state government.

Influenced

The capacity to have an effect on the character, development, or behavior of someone or something, or the effect itself.