Rob and Fran Form Bluebird Corporation with the Following Investments

question 1

Multiple Choice

Rob and Fran form Bluebird Corporation with the following investments.
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Each receives 50% of Bluebird's stock.In addition,Fran receives cash of $40,000.One result of these transfers is that Fran has a:

• A)Recognized loss of $60,000.
• B)Recognized loss of $20,000.
• C)Basis of $460,000 in the Bluebird stock (assuming Bluebird reduces its basis in the land to $440,000).
• D)Basis of $400,000 in the Bluebird stock (assuming Bluebird reduces its basis in the land to $440,000).
• E)None of the above.

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Definitions:

Delta Waves

Long, slow brain waves that indicate the deepest stage of sleep.

REM Sleep

A phase of sleep characterized by rapid eye movements, where dreaming often occurs and brain activity is high, resembling wakefulness.

Slow Wave Sleep

A phase of sleep characterized by low frequency, high amplitude brain waves, indicative of deep, restorative sleep.

Sleep Spindles

Brief bursts of brain activity, characterized by rapid rhythms, that occur during stage 2 of non-REM sleep and are associated with learning and memory consolidation.