Alan, an Owl Corporation Shareholder, Makes a Contribution to Capital

question 54

True/False

Alan, an Owl Corporation shareholder, makes a contribution to capital of equipment to Owl, basis of $40,000 and fair market value of $50,000. Owl's basis of the equipment that Alan contributes is equal to $50,000, the property's fair market value.

---

Definitions:

Pituitary

A small, pea-sized gland located at the base of the brain, functioning as the master gland by producing and releasing hormones that regulate many body functions.

Steroid Hormone

Lipid-based hormones that pass through cellular membranes and bind to specific receptors to alter gene expression.

Protein-Type Hormone

Hormones that are composed of chains of amino acids and interact with cell surface receptors; they include insulin and growth hormones.

Cellular Level

The level of organization that includes cells, the basic structural and functional units of all living organisms.