During 2016,Jimmy Incorporates His Data Processing Business

question 48

Multiple Choice

During 2016,Jimmy incorporates his data processing business.Jimmy is the sole shareholder.The following assets are transferred to the corporation:
Cash $2,000
Computer Equipment:
Fair market value 20,000
Adjusted basis 12,000
Original cost 24,000
Furniture:
Fair market value 20,000
Adjusted basis 32,000
Original cost 64,000
​
How much gain (loss) will Jimmy recognize from the transfer of the assets to the corporation?

• A)$-0-
• B)$(4,000)
• C)$8,000
• D)$20,000
• E)$(12,000)

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Definitions:

Inadequately Funded

Describing a situation, project, or organization that does not receive sufficient financial resources for optimal operation.

Hirschi

Relates to Travis Hirschi, a prominent criminologist known for his social control theory which argues that strong social bonds inhibit deviant behavior.

Adolescent Siblings

Brothers and sisters in their teenage years, a period marked by significant growth, change, and development.

Deviance

Behaviors or actions that violate societal norms or expectations.