Nick Owns 60% of the Agate Company for Which His

question 90

Multiple Choice

Nick owns 60% of the Agate Company for which his basis is $500,000.He sells one-fourth of his ownership interest to Bernice for $190,000.Which of the following statements is correct?

• A)If Agate is an S corporation,Nick has a recognized gain of $65,000,some of which may be capital and some of which may be ordinary income.
• B)If Agate is a C corporation,Nick has a recognized capital gain of $65,000.
• C)If Agate is a partnership,Nick has a recognized capital gain of $65,000.
• D)Only b.and c.are correct.
• E)a. ,b. ,and c.are correct.

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The commercial activities related to the buying and selling of carbonated soft drinks.

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The measure of the relationship between two variables or sets of data.

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The study of individuals, groups, or organizations and the processes they use to select, secure, use, and dispose of products, services, experiences, or ideas.