Rob and Fran Form Bluebird Corporation with the Following Investments

question 68

Multiple Choice

Rob and Fran form Bluebird Corporation with the following investments.
​

Each receives 50% of Bluebird's stock. In addition, Fran receives cash of $40,000. One result of these transfers is that Fran has a:

• A)Recognized loss of $60,000.
• B)Recognized loss of $20,000.
• C)Basis of $460,000 in the Bluebird stock (assuming Bluebird reduces its basis in the land to $440,000).
• D)Basis of $400,000 in the Bluebird stock (assuming Bluebird reduces its basis in the land to $440,000).
• E)None of the above.

---

Definitions:

Electric Signals

Electrical impulses or waves that carry data or instructions between components in an electronic system, forming the basis of digital communication.

Signal Conditioning

The process of manipulating an analog signal in such a way that it meets the requirements for further processing, such as amplification or filtering.

Usable Form

A state or format of data or information that can be easily understood and applied by users or systems.

Centralized Control

An approach where all decision-making and system control mechanisms are concentrated in a single location or entity.