Brenda Contributes Appreciated Property to Her Business Entity in a Transaction

question 33

Multiple Choice

Brenda contributes appreciated property to her business entity in a transaction which qualifies for nonrecognition of gain.Brenda's ownership interest is 60%.The business entity later sells the appreciated property for $110,000.The property is not depreciable.Which of the following statement(s) is correct?

• A)If the entity is a partnership,Brenda's gross income is increased by $41,000 [($35,000 ´ 100%)+ ($10,000 ´ 60%)] in the year of the sale of the property by the partnership.
• B)If the entity is a C corporation,the corporation's gross income is increased by $10,000 in the year of the sale of the property by the corporation.
• C)If the entity is an S corporation,the S corporation's gross income is increased by $10,000 in the year of the sale of the property by the S corporation and Brenda's gross income is increased by $6,000 ($10,000 ´ 60%).
• D)All of the above.
• E)None of the above.

Recognize the characteristics, symptoms, and risk factors of Alzheimer’s disease.

Appreciate the importance of evidence-based practice in healthcare decision-making.

Describe the components and interdisciplinary team of hospice care.

Identify the leading risk factors for cardiovascular disease.

---

Definitions:

After-Tax Earnings

The amount of net income remaining after all taxes have been deducted, reflecting the company's profitability after fulfilling tax obligations.

Stock Split

A corporate action that increases the number of shares outstanding, reducing the price per share without changing the company's market capitalization.

Paid in Surplus

The amount of money paid to a company by investors in exchange for stock, beyond the par value of the stock.

Par Value

The face value of a bond or stock, as determined at the time of issuance.