Wally Contributes Land (Adjusted Basis of $30,000; Fair Market Value

question 81

True/False

Wally contributes land (adjusted basis of $30,000; fair market value of $100,000) to an S corporation in a transaction which qualifies under § 351. The corporation subsequently sells the land for $120,000, recognizing a gain of $90,000 ($120,000 - $30,000). If Wally owns 30% of the stock, $76,000 [$70,000 + 30%($20,000)] of the $90,000 recognized gain is allocated to Wally.

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Definitions:

Triangular Theory

A theory of love proposed by psychologist Robert Sternberg, which suggests that love can be understood in terms of three components: intimacy, passion, and commitment.

Passionate

Having, showing, or caused by strong feelings or a strong belief.

Attention-Seeking

Behavior aimed at attracting notice and acknowledgment from others, often due to a desire for validation or affection.

Ludus

in the context of love, refers to a playful, uncommitted love style that values fun and freedom over deep emotional attachment.