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Shawn,a Sole Proprietor,is Engaged in a Service Business and Uses

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Shawn,a sole proprietor,is engaged in a service business and uses the cash basis of accounting.In the current year,Shawn incorporates his business by forming Aqua Corporation.In exchange for all of its stock,Aqua receives: assets (basis of $380,000 and fair market value of $1.8 million),trade accounts payable of $125,000,and loan due to a bank of $375,000.The proceeds from the bank loan were used by Shawn to provide operating funds for the business.Aqua Corporation assumes all of the liabilities transferred to it.
Shawn,a sole proprietor,is engaged in a service business and uses the cash basis of accounting.In the current year,Shawn incorporates his business by forming Aqua Corporation.In exchange for all of its stock,Aqua receives: assets (basis of $380,000 and fair market value of $1.8 million),trade accounts payable of $125,000,and loan due to a bank of $375,000.The proceeds from the bank loan were used by Shawn to provide operating funds for the business.Aqua Corporation assumes all of the liabilities transferred to it.

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Definitions:

Narrow Sense Heritability

The proportion of phenotypic variance that can be attributed to additive genetic variance, important in the prediction of response to selection.

Body Height

A measurement of an individual from the bottom of the feet to the top of the head when standing upright.

Phenotypic Plasticity

The capacity of an organism to alter its physical appearance or characteristics when the environment changes.

Reaction Norms

Patterns of phenotypic expression of a genotype across a range of environmental conditions, illustrating the plasticity of an organism's traits.

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