Kevin and Nicole Form Indigo Corporation with the Following Transfers

question 84

Multiple Choice

Kevin and Nicole form Indigo Corporation with the following transfers: inventory from Kevin (basis of $360,000 and fair market value of $400,000) and improved real estate from Nicole (basis of $320,000 and fair market value of $375,000) .Nicole,an accountant,agrees to contribute her services (worth $25,000) in organizing Indigo.The corporation's stock is distributed equally to Kevin and Nicole.As a result of these transfers:

• A)Indigo can deduct $25,000 as a business expense.
• B)Nicole has a recognized gain of $55,000 on the transfer of the real estate.
• C)Indigo has a basis of $360,000 in the inventory.
• D)Indigo has a basis of $375,000 in the real estate.
• E)None of the above.

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Definitions:

Migrants

Individuals who move from one region or country to another, often for reasons such as employment, better living conditions, or to escape conflict.

Human Resource Information System (HRIS)

A software or online solution used to manage employee data, payroll, recruitment, and other human resource functions.

Workforce Planning

The process of analyzing an organization's future workforce needs and determining the necessary actions to meet those needs.

Company Intranet

A private network accessible only to an organization's staff, often used to share information, operational systems, or computing services within the organization.