On July 1, 2014, Robert Forms the Yew Corporation

question 34

Multiple Choice

On July 1, 2014, Robert forms the Yew Corporation. In exchange for 100 percent of the corporation's stock, Robert contributes land with a fair market value of $100,000. Robert acquired the land 5 years ago at a cost of $30,000. At the date of the contribution, the land is subject to a $10,000 mortgage which the corporation assumes. What is the basis of the land to Yew Corporation?

• A)$20,000
• B)$30,000
• C)$90,000
• D)$100,000
• E)None of the above

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Definitions:

Expectancy Theory

A motivational theory suggesting that individuals are motivated to act based on the expected outcome and the value they place on that outcome.

Victor Vroom

A renowned management theorist known for his work on expectancy theory which explains how individuals choose behaviors based on expected outcomes.

Expected Level of Task Performance

The anticipated standard or degree of accomplishment that an individual or group should achieve in executing a specific task or duty.

Hard Work

The extensive effort and dedication put into tasks to achieve goals, often characterized by long hours and high levels of commitment.