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After a Plan of Complete Liquidation Has Been Adopted,Condor Corporation

question 42

Multiple Choice

After a plan of complete liquidation has been adopted,Condor Corporation sells its only asset,land (basis of $170,000) ,to Eduardo (an unrelated party) for $400,000.Under the terms of the sale,Condor Corporation receives cash of $100,000 and Eduardo's notes for the balance of $300,000.The notes are payable over the next five years ($60,000 per year) and carry an appropriate interest rate.Immediately after the sale,Condor Corporation distributes the cash and notes to Maria,the sole shareholder of Condor Corporation.Maria has a basis of $80,000 in the Condor stock.The installment notes have a value equal to their face amount.If Maria wishes to defer as much gain as possible on the transaction,which of the following is correct?

Understand the legal theories underlying mortgages, including lien theory and title theory, and their implications for borrowers and lenders.

Explain the implications of the Dodd-Frank Act on mortgage lending and consumer protection.

Describe the legal principle of adverse possession and its requirements.

Understand the concept of marketable title and the implied warranty of habitability.

Definitions:

Motivation Theories

Psychological theories that explain the forces which drive individuals to initiate, direct, and persist in actions and behaviors.

Mediating Variables

Factors that influence the relationship between independent and dependent variables in research or experiments, explaining how or why such effects occur.

Moderators

Factors that can influence the strength or direction of the relationship between two variables, often considered in research and analysis.

Explanatory Constructs

These are concepts or theories developed to explain certain phenomena, providing a framework to understand research findings or observations.