Dave Contributes Land (Adjusted Basis of $30,000;fair Market Value of $100,000)to

question 47

True/False

Dave contributes land (adjusted basis of $30,000;fair market value of $100,000)to Tan,Inc. ,in exchange for all of its stock.The land is encumbered by a mortgage of $27,000 which Tan assumes.Since the transaction qualifies for nonrecognition treatment under § 351,Tan's adjusted basis for the land is $3,000 ($30,000 - $27,000)and Dave's adjusted basis for the stock is $3,000.

---

Definitions:

Drug Abuse Disorder

A medical condition characterized by the compulsive use of drugs despite harmful consequences, leading to mental and physical health issues.

Network Therapy

A therapeutic approach involving a patient's social network (family, friends, etc.) in the treatment process for mental health or substance abuse issues.

Traditional Psychiatry

A branch of medicine focused on the diagnosis, treatment, and prevention of mental illnesses, utilizing classical methods and theories.

Total Institution

A place of residence and work where a large number of similarly situated individuals, cut off from the wider community for a considerable time, together lead an enclosed, formally administered life.