Three Individuals Form Skylark Corporation with the Following Contributions: Cliff

question 30

Multiple Choice

Three individuals form Skylark Corporation with the following contributions: Cliff, cash of $50,000 for 50 shares? Brad, land worth $20,000 (basis of $11,000) for 20 shares? and Ron, cattle worth $9,000 (basis of $6,000) for 9 shares and services worth $21,000 for 21 shares.

• A) These transfers are fully taxable and not subject to § 351.
• B) Ron's basis in his stock is $27,000.
• C) Ron's basis in his stock is $6,000.
• D) Brad's basis in his stock is $20,000.
• E) None of the above.

---

Definitions:

Opiate Family

A group of drugs, derived from the opium poppy, used primarily for pain relief but which can also lead to addiction and abuse.

Methadone

A heroin replacement used to treat heroin addicts, often to reduce the craving after initial withdrawal symptoms have abated. Methadone therapy appears to work best in conjunction with good individual and group psychological intervention programs, as well as ongoing peer support.

Morphine

A powerful opiate analgesic drug derived from the opium poppy, used to relieve severe pain.

Ergot

A fungus that grows on rye and other grains, known for producing substances used in medications and historically linked to episodes of mass poisoning.