Jane Transfers Property (Basis of $180,000 and Fair Market Value

question 50

Multiple Choice

Jane transfers property (basis of $180,000 and fair market value of $500,000) to Green Corporation for 80% of its stock (worth $425,000) and a long-term note (worth $75,000) , executed by Green Corporation and made payable to Jane. As a result of the transfer:

• A) Jane recognizes no gain.
• B) Jane recognizes a gain of $75,000.
• C) Jane recognizes a gain of $270,000.
• D) Jane recognizes a gain of $320,000.
• E) None of the above.

Recognize the treatment of deferred revenues in financial statements.

Understand the basic principles and processes of recording financial transactions in accounting.

Learn how to prepare and interpret a trial balance.

Identify common errors in accounting records and understand how to correct them.

---

Definitions:

Oligopolistic Markets

Market structures dominated by a small number of large firms, leading to limited competition and high barriers to entry.

Cooperation

The process of groups or individuals working together towards a common goal, often leading to mutual benefit.

Self-Interest

The motivation driving individuals to pursue their own welfare, often guiding economic decisions and behaviors.

Dominant Strategy

A strategy that is best for a player in a game regardless of the strategies chosen by the other players.