To Improve Its Liquidity,the Shareholders of Spoonbill Corporation Make a Capital

question 115

Multiple Choice

To improve its liquidity,the shareholders of Spoonbill Corporation make a capital contribution of $200,000 in cash.To facilitate the building of a manufacturing plant,the City of Wichita donates land (worth $800,000) to Spoonbill Corporation.As a result of these transactions,Spoonbill has:

• A)No income and a basis in the land of zero.
• B)Income of $1 million and a basis in the land of zero.
• C)Income of $800,000 and a basis in the land of $800,000.
• D)No income and a basis in the land of $800,000.
• E)None of these.

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Definitions:

Anorexics

Individuals who suffer from anorexia nervosa, a serious eating disorder characterized by self-starvation and excessive weight loss.

Bulimics

Individuals who suffer from bulimia nervosa, an eating disorder characterized by episodes of binge eating followed by purging.

Middle-Class

A social, economic, or cultural class that falls between the working class and the upper class, typically associated with moderate income, education, and professional jobs.

Young

Used to describe individuals in the early stages of life, often implying a lack of maturity, experience, or age.