General Inertia Corporation Made a Pro Rata Distribution of $50,000

question 30

Multiple Choice

General Inertia Corporation made a pro rata distribution of $50,000 to Tiara,Inc.in partial liquidation of the company on December 31,year 1.Tiara,Inc.owns 500 shares (50%) of General Inertia.The distribution was in exchange for 250 shares of Tiara's stock in the company.After the partial liquidation,Tiara continued to own 50% of the remaining stock in General Inertia.At the time of the distribution,the shares had a fair market value of $200 per share.Tiara's income tax basis in the shares was $100 per share.General Inertia had total E&P of $800,000 at the time of the distribution.What amount of dividend or capital gain does Tiara recognize as a result of the transaction?

• A)Tiara does not recognize any dividend income or capital gain.
• B)Tiara recognizes capital gain of $50,000.
• C)Tiara recognizes dividend income of $50,000.
• D)Tiara recognizes capital gain of $25,000.

Describe the creation and destruction of oceanic crust in the context of plate tectonics.

Understand the role of mantle processes in the dynamics of plate movements.

Differentiate between continental and oceanic plate dynamics.

Explain the geological evidence used to reconstruct past continental configurations.

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Definitions:

Ascomycota

A phylum within the kingdom Fungi, characterized by the formation of spores in specialized sacs called asci, including many molds, yeasts, and morels.

Basidiomycota

A division of fungi characterized by producing spores on basidia, including mushrooms and toadstools.

Rhizopus

A genus of mold fungi that are often found on decaying fruit and bread, known for causing black mold.

Sexual Reproduction

The process by which two organisms produce offspring that inherit genetic materials from both parents, leading to genetic diversity.