43) Determine which of the next
statements is true.
A) To find out a shareholder’s foundation in a
single class of inventory obtained in a Sec. 351 change, the FMV of the inventory
obtained should be recognized.
B) If a couple of asset is transferred
by the transferor in a Sec. 351 nonrecognition transaction, the transferor is
assumed to have obtained a proportionate share of the inventory, money, and different
boot property for every property transferred primarily based upon the property’ relative
FMVs.
C) The transferor’s foundation for any noncash
boot property obtained in a Sec. 351 transaction is the boot’s FMV decreased by
any unrecognized acquire.
D) All the above are false.
44) Determine which of the next
statements is true.
A) If inventory and boot property are each
obtained in a Sec. 351 change, the transferor should allocate the whole foundation
within the contributed property between the inventory and boot property primarily based on the
relative FMVs of the inventory and the boot property.
B) The adjusted foundation of inventory obtained in
a Sec. 351 transaction is computed by deducting the deferred loss from the FMV
of the inventory obtained.
C) The holding interval for inventory obtained
in a Sec. 351 transaction in change for a capital asset begins on the day
after the date of the change.
D) All the above are false.
45) Jerry transfers two property to a
company as a part of a Sec. 351 change. The primary asset has an adjusted
foundation of $70,000 and an FMV of $50,000. The second asset has an adjusted foundation
of $70,000 and an FMV of $150,000. The FMV of the inventory obtained is $180,000,
and he additionally receives $20,000 money. The realized and acknowledged acquire on the
second asset is
A) $80,000 realized; $20,000 acknowledged.
B) $80,000 realized; $15,000 acknowledged.
C) $20,000 realized; $10,000 acknowledged.
D) $10,000 realized; $10,000 acknowledged.
46) Max transfers the next properties
to a newly created company for $90,000 of inventory and $10,000 money in a
transaction that qualifies underneath Sec. 351.
Asset One
Asset Two
Asset Three
FMV
Foundation
$30,000
35,000
$45,000
40,000
$25,000
20,000
Max’s acknowledged acquire is
A) $three,000.
B) $5,000.
C) $7,000.
D) $10,000.
47) Cherie transfers two property to a
newly-created company. The primary asset has an adjusted foundation of $40,000 and
a FMV of $50,000. The second asset has an adjusted foundation of $35,000 and a FMV
of $25,000. Cherie receives inventory with FMV of $66,000 and $9,000 money. Cherie
should acknowledge a acquire of
A) $10,000.
B) $6,000.
C) $5,000.
D) $four,000.
48) Henry transfers property with an
adjusted foundation of $90,000 and an FMV of $100,000 to a newly-formed company
in a Sec. 351 change. Henry receives inventory with an FMV of $80,000 and a
short-term notice with a $20,000 FMV. Henry’s acknowledged acquire is
A) $zero.
B) $5,000.
C) $10,000.
D) $20,000.
49) Henry transfers property with an
adjusted foundation of $95,000 and an FMV of $100,000 to a newly shaped company
in a Sec. 351 change. Henry receives inventory with an FMV of $85,000 and a
short-term notice with a $15,000 FMV. Henry’s foundation within the inventory is
A) $100,000.
B) $95,000.
C) $90,000.
D) $85,000.
50) A shareholder’s foundation in inventory
obtained in a Sec. 351 transaction is
A) elevated by the acquire acknowledged by the
company.
B) decreased by the acquire acknowledged by the
transferor.
C) decreased by liabilities assumed by the
company.
D) elevated by the FMV of boot obtained
from the company.
51) Jeremy transfers Sec. 351 property
acquired three years earlier having a $100,000 foundation and a $160,000 FMV to
Jeneva Company. Jeremy receives all 200 shares of Jeneva inventory having a
$140,000 FMV, and a $20,000 90-day Jeneva notice. What’s Jeremy’s acknowledged
acquire?
A) $zero
B) $60,000
C) $20,000
D) $160,000
52) Carolyn transfers property with an
adjusted foundation of $50,000 and an FMV of $60,000 in change for Prime
Company inventory in a Sec. 351 transaction. Carolyn’s foundation within the inventory is
A) $60,000.
B) $50,000.
C) $10,000.
D) $zero.
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