Rob, Bill, and Steve Form Big Company

question 17

Multiple Choice

Rob, Bill, and Steve form Big Company. Rob performs $45,000 of services for his 45 shares of the company. Bill transferred property with a basis of $5,000 for $75,000 of stock (75 shares) . Steve contributes cash of $100,000 for his 100 shares. Which of the three must recognize income in the year of the formation?

• A)Rob
• B)Rob, Bill
• C)Bill
• D)Steve, Bill
• E)Steve, Rob

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Definitions:

Schizotypal Personality Disorder

A psychiatric disorder defined by extreme fear in social situations, impaired reasoning, paranoid thoughts, a sense of being detached from the environment, short-term psychosis, and often peculiar beliefs.

Behavioral Eccentricities

Unusual or unconventional behaviors or actions that deviate from societal norms but do not necessarily indicate a mental disorder.

Schizophrenia

A chronic brain disorder characterized by distorted thinking, perceptions, emotions, language, sense of self, and behavior.

Schizotypal Personality Disorder

A mental health condition characterized by severe social anxiety, thought pattern disturbances, and eccentric behavior, affecting interpersonal relationships.