Amos Contributes Land with an Adjusted Basis of $70,000 and a Fair

question 18

True/False

Amos contributes land with an adjusted basis of $70,000 and a fair market value of $100,000 to White, Inc., an S corporation, in exchange for 50% of the stock of White, Inc. Carol contributes cash of $100,000 for the other 50% of the stock. If White later sells the land for $110,000, $35,000 [$30,000 + 50%($10,000)] is allocated to Amos and $5,000 ($10,000 ´ 50%) is allocated to Carol.

---

Definitions:

Knee-Chest Position

A body posture where an individual kneels with their chest touching the knees, often used in medical examinations.

Disinfectant

A chemical substance used to kill or inhibit the growth of harmful organisms on surfaces, in water, or in the air.

Earplugs

Devices inserted in the ear canal to protect the ears from loud noises, water, or foreign bodies.

Jackknife Position

A position often used in physical activities, surgery, or yoga, where the body is bent at the waist to a significant degree, resembling the shape of a jackknife.