John Purchases All of the Common Stock of Clarke Corporation

question 101

Multiple Choice

John purchases all of the common stock of Clarke Corporation for $280,000.The assets of the corporation are: ​
What is John's basis in the common stock he acquired?

• A)$195,000
• B)$215,000
• C)$225,000
• D)$250,000
• E)$280,000

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Definitions:

Utilitarian

A philosophical principle that actions are right if they are useful or for the benefit of a majority.

Future

The time or a period of time following the moment of speaking or writing; time regarded as still to come.

Preventing Crime

Measures or strategies designed to deter illegal activities and protect individuals and communities from criminal acts.

Just Deserts

The concept of receiving a punishment or reward that is rightfully deserved.