Melba Contributes Land (Basis of $190,000; Fair Market Value of $250,000)

question 133

Multiple Choice

Melba contributes land (basis of $190,000; fair market value of $250,000) to a business entity in exchange for 100% of the stock. During the first year of operations, the entity earns a profit of $75,000. At the end of the first year, the entity has outstanding liabilities of $30,000 ($20,000 recourse and $10,000 nonrecourse) .

• A) If the entity is a C corporation, Melba's basis for her stock at the end of the first year is $265,000 ($190,000 + $75,000) and her at-risk basis is $265,000.
• B) If the entity is a partnership, Melba's basis for her partnership interest (outside basis) at the end of the first year is $355,000 ($250,000 + $75,000 + $30,000) and her at-risk basis is $345,000 ($250,000 + $75,000 + $20,000).
• C) If the entity is an S corporation, Melba's basis for her stock at the end of the first year is $345,000 ($250,000 + $75,000 + $20,000) and her at-risk basis is $345,000.
• D) Only a. and c. are correct.
• E) a., b., and c. are incorrect.

Recognize the impact of proximity and familiarity on attraction.

Identify and differentiate between various categories of love.

Comprehend the influence of physical attractiveness on perceptions of other positive traits.

Understand the components and examples of companionate love.

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Definitions:

Agentic Professions

Occupations that are associated with getting things accomplished.

Communal

Pertaining to or shared by the members of a community; often refers to resources or responsibilities held in common.

Fraternal

Pertaining to brothers; often used to describe twins who are born from two separate eggs fertilized by two different sperm cells, and thus are not genetically identical.

Intrinsic

Relating to the essential nature of something or coming from within, not influenced by external factors.